Canova Corporation adopted the dollar-value LIFO retail method on January 1, 2016. On that date, the cost of the inventory on hand was $21,000 and its retail value was $25,000. Information for 2016 and 2017 is as follows:

	Ending Inventory			Retail	Cost-to-Retail
Date	at Retail			Price Index	Percentage
12/31/16	$	36,000		1.20	86	%
12/31/17		45,000		1.44	88

Required:
1.	What is the cost-to-retail percentage for the inventory on hand at 1/1/16?

2.	Calculate the inventory value at the end of 2016 and 2017 using the dollar-value LIFO retail method.