Cansela Corporation uses a periodic inventory system and the LIFO method to value its inventory. The company began 2018 with inventory of 6,400 units of its only product. The beginning inventory balance of $105,600 consisted of the following layers:

2,400 units at $14 per unit	=	$	33,600
4,000 units at $18 per unit	=		72,000
Beginning inventory		$	105,600

During the three years 20182020, the cost of inventory remained constant at $20 per unit. Unit purchases and sales during these years were as follows:

	Purchases	Sales
2018	16,000	17,500
2019	21,000	23,500
2020	18,000	19,000

Required: 1. Calculate cost of goods sold for 2018, 2019, and 2020. 2. Disregarding income tax, determine the LIFO liquidation profit or loss, if any, for each of the three years. 3. Determine the effects of LIFO liquidation on cost of goods sold and net income for 2018, 2019, and 2020. Canselas effective income tax rate is 40%.