Harlequin Co. has used the dollar-value LIFO retail method since it began operations in early 2015 (its base year). Its beginning inventory for 2016 was $36,000 at cost and $72,000 at retail prices. At the end of 2016, it computed its estimated ending inventory at retail to be $120,000. Assuming its cost-to-retail percentage for 2016 transactions was 60%, what is the inventory balance that Harlequin Co. would report in its 12/31/16 balance sheet?
A.	$64,800.
B.	$72,000.
C.	$120,000.
D.	The balance cant be determined with the given information.
Answer:D
Harlequin Co. has used the dollar-value LIFO retail method since it began operations in early 2015 (its base year). Its beginning inventory for 2016 was $36,000 at cost and $72,000 at retail prices. At the end of 2016, it computed its estimated ending inventory at retail to be $120,000. Assuming its cost-to-retail percentage for 2016 transactions was 60%, what is the inventory balance that Harlequin Co. would report in its 12/31/16 balance sheet?
A.	$64,800. B.	$72,000. C.	$120,000. D.	The balance cant be determined with the given information.