Chide Inc. changed its inventory method to LIFO e$$ective January $1.$ During December, Chide$$s storage facility was shut down due to a strike resulting in a drastic reduction in inventory. The following data are available.

UnitsUnit CostBeginning inventory $($Base layer of LIFO$$January $1)12,000$$$1\mathrm{.}00$Inventory purchases during the year$270,0001\mathrm{.}25$Total cost of goods sold available for sale$282,000$Goods sold $($valued on a LIFO basis$)$ from:Purchases layer$270,0001\mathrm{.}25$Base inventory layer$6,0001\mathrm{.}00$Total cost of goods sold$276,000$Ending inventory $($December $31)6,000$

a$.$ What is the e$$ect of the LIFO liquidation on after$-$tax pro$$t or loss assuming a $25\%$ tax rate?

b$.$ What is the accounting explanation for LIFO liquidation?