Inventories Most inventones owned by Deere \& company andits U.S. equipment subsidiaries are valued at cost, on the "Fist-in, first-out (Lifo) basis, Remaining imentories are generally valued at the lower of cost, on the "first-in, first-out" (FIFO) basis, or market, The value of gross inventories on the LIFO basis represented 66 percent and 65 percent of worldwide gross inventories at Fifo value at October 31,2015 and 2014 , respectively. If all inventories had been valued on a Fifo basis. estimated inventories by major classification at October 31 in millions of dollars would have been as follows: This footnote reveals that not all of Deeres inventories are reported using the same inventory costing method (companies can use different imventory costing methods for different inventory pools) a. What amount does Deere report for inventories on its 2015 balance sheets? 1 million b. What would Deere have reperted as inventories on its 2015 balance sheet had the company used FiFO inventory costing for all of its inventories?s c. What cumulative effect has the use of Lifo inventory costing had, as of yeareend 2015, on Deere's pretax income compared with the pretax income it would have reported had it used FiFO inventory costing for all of its inventories? Deeres cumulative pretiox income has by 5 million since it adopted LIFO inventory costing: d. Assuming a-35\% income-tax rate, by what cumulative dollar amount has Deere's tax expense been affected by use of LIFO inventory costing as of year-end 2015 ? Has the use of Lifo inyentory costing increased or decreased Deere's cumulative tax expense? (Round answer to one decimal place.) Deere's cumulative income taxes were by 1 million as compared to the taxes that wouldve been paid under the FFO system. e. What effect has the use of LIFO inventory costing had on Deere's pretax income and tax expense for 2015 only (assume a 35% income tax rate)? (Riound answers to one decimal place. If applicable.) 2015 pretaxincome by 5 malion..

1. Inventories Most inventones owned by Deere & company andits U.S. equipment subsidiaries are
valued at cost, on the "Fist-in, first-out (Lifo) basis, Remaining imentories are generally valued
at the lower of cost, on the "first-in, first-out" (FIFO) basis, or market, The value of gross
inventories on the LIFO basis represented 66 percent and 65 percent of worldwide gross
inventories at Fifo value at October 31,2015 and 2014 , respectively. If all inventories had been
valued on a Fifo basis. estimated inventories by major classification at October 31 in millions of
dollars would have been as follows: This footnote reveals that not all of Deeres inventories are
reported using the same inventory costing method (companies can use different imventory
costing methods for different inventory pools) a. What amount does Deere report for inventories
on its 2015 balance sheets? 1 million b. What would Deere have reperted as inventories on its
2015 balance sheet had the company used FiFO inventory costing for all of its inventories?s c.
What cumulative effect has the use of Lifo inventory costing had, as of yeareend 2015, on
Deere's pretax income compared with the pretax income it would have reported had it used FiFO
inventory costing for all of its inventories? Deeres cumulative pretiox income has by 5 million
since it adopted LIFO inventory costing: d. Assuming a-35% income-tax rate, by what
cumulative dollar amount has Deere's tax expense been affected by use of LIFO inventory
costing as of year-end 2015 ? Has the use of Lifo inyentory costing increased or decreased
Deere's cumulative tax expense? (Round answer to one decimal place.) Deere's cumulative
income taxes were by 1 million as compared to the taxes that wouldve been paid under the FFO
system. e. What effect has the use of LIFO inventory costing had on Deere's pretax income and
tax expense for 2015 only (assume a 35% income tax rate)? (Riound answers to one decimal
place. If applicable.) 2015 pretaxincome by 5 malion.