Koloa Company purchased 100% of the outstanding voting common shares of Hanapepe Company on December 31, 2023 for $470,000. At that date, Hanapepe had $200,000 of common shares and retained earnings of $130,000. It was agreed that the net assets were fairly valued except that the fair value of the capital assets exceeded their net book value by $80,000, and the carrying value of the inventory exceeded its fair value by $35,000. The capital assets had a remaining useful life of 5 years as of the acquisition date. Inventory turns over 10 times a year. What adjustment should be made to the consolidated financial statements for the year ended December 31, 2024, with respect to the inventory fair value differential?