What effect has the use of lifo inventory costing had on ge's pretax income and tax expense for 2009 only (assume a 35% income tax rate)? (round answers to the nearest whole number. )
Without knowing GE's specific financial data for 2009, it is not possible to calculate the exact effect of using the LIFO inventory costing method on GE's pretax income and tax expense. However, in general, using LIFO can result in lower pretax income and tax expense in periods of rising prices, as the cost of goods sold will be higher and the reported profits will be lower. The exact impact will depend on the change in inventory levels and the magnitude of price increases during the year.
