Canova Corporation adopted the dollar-value LIFO retail method on January 1, 2021. On that date, the cost of the inventory on hand was $15,000 and its retail value was $18,750. Information for 2021 and 2022 is as follows:

Required:1. What is the cost-to-retail percentage for the inventory on hand at 1/1/2021?2. Calculate the inventory value at the end of 2021 and 2022 using the dollar-value LIFO retail method.

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Cost-to-Retail Percentage Retail Price Ending Inventory at Retail Date Index 1.25 $25,000 12/31/2021 82% 85 12/31/2022 28,600 1.30