How much higher or lower would income taxes

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Question - The following is an excerpt from CVS's 2016 annual report:

Inventories - Inventories are valued on a lower of last-in, first-out (LIFO) cost or market basis. At August 31, 2017 and 2016, inventories would have been greater by $1,427 million and $1,687 million, respectively, if they had been valued on a lower of first-in, first-out (FIFO) cost or market basis. As a result of declining inventory levels, the fiscal 2017 LIFO reserve was reduced by $260 million of LIFO liquidation. Inventory includes product costs, inbound freight, warehousing costs and vendor allowances not classified as a reduction of advertising expense.

How much higher or lower would income taxes have been in the current year (year ended August 31, 2017) if CVS used the FIFO method? ssume an income tax rate of 35%.

Reference no: EM132707836

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