Harlequin Co

question 72

Multiple Choice

Harlequin Co. adopted the dollar-value LIFO retail method at the beginning of 2018 (its base year) . Its beginning inventory for 2018 was $36,000 at cost and $72,000 at retail prices. At the end of 2018, it computed its estimated ending inventory at retail to be $110,000. Assuming its cost-to-retail percentage for 2018 transactions was 60%, and that the retail price index at the end of 2018 was 1.10, what is the inventory balance that Harlequin Co. would report in its 12/31/2018 balance sheet?

• A) $66,000.
• B) $54,480.
• C) $110,000.
• D) $60,000.

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