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7. A disclosure note from Snap-on Inc.'s 10-K for the 2020 fiscal year is listed below. Use this disclosure note to answer the following questions. Any dollar amounts in your answers should be reported in millions Nute Slaventuried Investories by major classification of 2020 and 2019 year end are as follow 2020 2019 6610 1263 Finished gode Work in propre Raw materials Total FIFO value Excess of current cost over LIFO cost Total inventories - 64345 616 125 3305 (840 7463 5 (145 7604 $ 3000 ANNUAL REPORT Net Coralidad Francia en lained Investories accounted for using the FIFO method approximated 37% and 53% of total investories as of 2020 and 2019 year end respectively The company accounts for its son-U.S. inventory on the FIFO method. As of 2020 year end, approximately 30% of the company's US inventory was accounted for sing the FIFO method and 70% was accounted for using the LIFO method. There were no LIFO inventory liquidations in 2020, 2019 or 2015 a. If the firm had used FIFO for all of its inventories, would before-tax income for the 2020 fiscal year have been higher or lower, and by what amount? Assume a 20% tax rate. (I point) b. Assuming a tax rate of 20%, at the end of 2020, what is the firm's cumulative tax savings by using LIFO instead of solely using FIFO? (1 point)

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