Raleigh Department Store uses the conventional retail method for the year ended December 31, 2016. Available information follows:

1. The inventory at January 1, 2016, had a retail value of $29,000 and a cost of $21,000 based on the conventional retail method.
2. Transactions during 2016 were as follows:

CostRetailGross purchases$342,000$582,500Purchase returns4,5006,000Purchase discounts5,000Gross sales582,500Sales returns5,000Employee discounts3,000Freight-in20,000Net markups17,000Net markdowns6,000

Sales to employees are recorded net of discounts.

1. The retail value of the December 31, 2017, inventory was $40,040, the cost-to-retail percentage for 2017 under the LIFO retail method was 71%, and the appropriate price index was 104% of the January 1, 2017, price level.
2. The retail value of the December 31, 2018, inventory was $37,450, the cost-to-retail percentage for 2018 under the LIFO retail method was 70%, and the appropriate price index was 107% of the January 1, 2017, price level.

Required:

2.Estimate ending inventory for 2016 assuming Raleigh Department Store used the LIFO retail method.