Question: Assume prices were stable during the period The following values

Assume 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 Harris’s 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 and how would you determine the amount?

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  • CreatedOctober 05, 2015
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