a. The inventory at January 1, 2019, had a retail value of $47,000 and a cost of $30,860 based on the conventional retail method. b. Transactions during 2019 were as follows: Gross purchases Cost $301,860 Retail $510,000 Purchase returns 6,100 12,000 Purchase discounts 5,200 Gross sales 476,000 Sales returns 8,000 Employee discounts 6,000 Freight-in 27,500 Net markups Net markdowns 27,000 12,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2020, inventory was $92,560, the cost-to-retail percentage for 2020 under the LIFO retail method was 65%, and the appropriate price index was 104% of the January 1, 2020, price level. d. The retail value of the December 31, 2021, inventory was $50,290, the cost-to-retail percentage for 2021 under the LIFO retail method was 64%, and the appropriate price index was 107% of the January 1, 2020, price level.