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Canova Corporation adopted the dollar-value LIFO retail method on January 1, 2011. On that date, the cost of the inventory on hand was $15,000 and its retail value was $18,750. Information for 2011 and 2012 is as follows:
Required:
1. What is the cost-to-retail percentage for the inventory on hand at 1/1/11?
2. Calculate the inventory value at the end of 2011 and 2012 using the dollar-value LIFO retail method.
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