Question: Computing and Analyzing a LIFO Liquidation Chide Inc. changed its inventory method to LIFO effective January 1 . During December, Chide's storage facility was shut

Computing and Analyzing a LIFO Liquidation
Chide Inc. changed its inventory method to LIFO effective 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.
a. What is the effect of the LIFO liquidation on after-tax profit or loss assuming a 25% tax rate?
$10,000
b. What is the accounting explanation for LIFO liquidation?
Due to lower cost inventory matched to current selling price which has increased over time.
Computing and Analyzing a LIFO Liquidation Chide Inc. changed its inventory

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