Harlequin Co. has used the dollar-value LIFO retail method since it began operations in early 2012 (its base year). Its beginning inventory for 2013 was $36,000 at cost and $72,000 at retail prices. At the end of 2013, it computed its estimated ending inventory at retail to be $120,000. Assuming its cost-to-retail percentage for 2013 transactions was 60%, what is the inventory balance that Harlequin Co. would report in its 12/31/13 balance sheet?

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The Answer of Harlequin Co. has used the dollar-value LIFO retail method since it began operations in early 2012 (its base year). Its beginning inventory for 2013 was $36,000 at cost and $72,000 at retail prices. At the end of 2013, it computed its estimated ending inventory at retail to be $120,000. Assuming its cost-to-retail percentage for 2013 transactions was 60%, what is the inventory balance that Harlequin Co. would report in its 12/31/13 balance sheet?