Harlequin Co. adopted the dollar-value LIFO retail method at the beginning of 2021 (its base year). Its beginning inventory for 2021 was $42,000 at cost and $78,000 at retail prices. At the end of 2021, it computed its estimated ending inventory at retail to be $122,000. Assuming its cost-to-retail percentage for 2021 transactions was 60%, and that the retail price index at the end of 2021 was 1.1, what is the inventory balance that Harlequin Co. would report in its 12/31/2021 balance sheet?

A.) 73,200

B.) 63,720

C.) 122,000

D.) 66,545