Grey Co. reports inventory under LIFO. During the current year, they liquidated a LIFO layer containing 10,000 units at a cost of $6.00 per unit. Current year costs for the same inventory are $10.00 per unit. What was the effect of liquidation on net income (assume a 25% tax rate)? Income is $40,000 higher with liquidation Income is $45,000 lower with liquidation Income is $40,000 lower with liquidation Income is $45,000 higher with liquidation Income is $30,000 higher with liquidation Income is $30,000 lower with liquidation