Harlequin Co. adopted the dollar-value LIFO retail method at the beginning of 2016 (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 $110,000. Assuming its cost-to-retail percentage for 2016 transactions was 60%, and that the retail price index at the end of 2016 was 1.12, what is the inventory balance that Harlequin Co. would report in its 12/31/16 balance sheet?

$66,000.

$54,480.

$110,000.

$60,000.