Harlequin Company has used the dollar$-$value LIFO retail method since it began operations in early $2023($its base year$).$ Its beginning inventory for $2024$ was $$38,500$ at cost and $$62,500$ at retail prices. At the end of $2024,$ it computed its estimated ending inventory at retail to be $$125,000.$ Assuming its cost$-$to$-$retail percentage for $2024$ transactions was $50\%,$ what is the inventory balance that Harlequin Company would report in its $12/31/2024$ balance sheet?

Multiple Choice

$$125,000$

$$56,250$

$$62,500$

The balance cannot be determined with the given information. Explain why the calculations are done this way.