Canova Corporation adopted the dollar-value LIFO retail method on January 1, 2018. On that date, the cost of the inventory on hand was $28,000 and its retail value was $40,000. Information for 2018 and 2019 is as follows:

Ending Inventory at Retail Retail Price Index Cost-to-Retail Percentage Date 12/31/18 $ 63,000 1.40 73 % 12/31/19 $ 72,000 1.50 75 %

Required: 1. What is the cost-to-retail percentage for the inventory on hand at 1/1/18?

2. Calculate the inventory value at the end of 2018 and 2019 using the dollar-value LIFO retail method.