The Reuschel Company began 2018 with inventory of 20,000 units at a cost of $7 per unit. During 2018, 60,000 units were purchased for $8.35 each. Sales for the year totaled 69,000 units leaving 11,000 units on hand at the end of 2018. Reuschel uses a periodic inventory system and the LIFO inventory cost method.

Q: Calculate the effect of the LIFO on the income. The effect of the LIFO layer liquidation is to____income by