Computing and Disclosing a LIFO Liquidation Southeast Inc. has maintained a periodic inventory system and the LIFO inventory method for over 20 years. The earliest layers of LIFO inventory of 18,000 units date back 15 years. The company had beginning inventory (January 1) made up of the following three layers. Units Unit Cost Total Cost 18,000 15,000 3,000 $20.00 $360,000 25.00 375,000 50.00 150,000 $885,000 At its December 31 year-end, an involuntary liquidation of beginning inventory occurred. Beginning inventory dropped to 24,000 units. The current replacement value of inventory is $50. a. What is the effect of the LIFO liquidation on after-tax profit or loss assuming a 25% tax rate? $ 0 b. What disclosure is required based on the answer to part a? The LIFO liquidation of $0 must be disclosed in the notes to the financial statements. by $ 0 The effect of the LIFO liquidation is to which in turn, causes taxes to