On Jan 1, 2010, the Michael-book Company adopted the dollar-value LIFO method for its one inventory pool. The pool's value on this date was $600,000. The 2010 and 2011 ending inventory valued at year-end costs were $690,000 and 714,960 respectively. The appropriate cost indexes are 1.04 for 2010 and 1.08 for 2011.

1. Calculate the ending inventory balance that Michael-book will report on its Dec 31, 2010 balance sheet.

2. Calculate the ending inventory balance that Michael-book will report on its Dec 31, 2011 balance sheet.

3. Explain in 1 to 3 sentences, why the dollar-value LIFO often results in less frequent LIFO liquidations.