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Canova Corporation adopted the dollar-value LIFO retail method on January 1, 2021. On that date, the cost of the inventory on hand was $19,000 and its retail value was $25,000. Information for 2021 and 2022 is as follows: Ending Inventoryat RetailRetail PriceIndexCost-to-Retail Percentage Date12/31/2021 $39,0001.3078% 12/31/2022 $51,0001.5080% Required: 1.What is the cost-to-retail percentage for the inventory on hand at 1/1/2021? 2.Calculate the inventory value at the end of 2021 and 2022 using the dollar-value LIFO retail method. Explanation 1. Cost-to-retail percentage:$19,000 =76% $25,000 2. EndingInventoryat Year-endRetail PricesStep 1Ending InventoryatBase Year RetailPricesStep 2Inventory Layers atBase Year Retail PricesStep 3 Inventory Layers Converted to Cost 2021 $39,000(given) $39,000 = $30,000$25,000(base)×1.00 × 76 %= $19,00 1.30 5,000 (2021) × 1.30 × 78 % = 5,07 Total ending inventory at dollar-value LIFO retail cost$24,07 2022 $51,000 (given)$51,000 = $34,000$25,000(base)×1.00 × 76 %= $19,00 1.50 5,000 (2021) × 1.30 × 78 % = 5,07 4,000 (2022) × 1.50 × 80 % = 4,80 Total ending inventory at dollar-value LIFO retail cos