Assume the change in inventory from January 1, 2016 to March 31, 2016 reflects a LIFO liquidation. Prices were stable during the period. The following values were obtained from the inventory records of Harris Company which has a fiscal year ending on December 31:

Inventory, January 1, 2016, LIFO	$80,000
Inventory, March 31, 2016, LIFO	70,000

	Required:
1.	Under what conditions is Harriss inventory liquidation not reflected in its first-quarter interim financial statements?
2.	Assuming that the liquidation is not to be reflected, what adjusting entry would Harris make?