Canova corporation adopted the dollar-value lifo retail method on january 1, 2018. on that date, the cost of the inventory on hand was $15,000 and its retail value was $18,750. information for 2018 and 2019 is as follows: ending inventoryat retail retail priceindex cost-to-retailpercentagedate12/31/1 8 $ 25,000 1.25 82 %12/31/19 $ 28,600 1.30 85 %required:
1. what is the cost-to-retail percentage for the inventory on hand at 1/1/18?
2. calculate the inventory value at the end of 2018 and 2019 using the dollar-value lifo retail method.

Which of the following statements is correct? stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. potential conflicts between stockholders and bondholders are increased if a firm's bonds are convertible into its common stock. takeovers are most likely to be attempted if the target firm’s stock price is above its intrinsic value. one advantage of operating a business as a corporation is that stockholders can deduct their pro rata share of the taxes the firm pays, thereby eliminating the double taxation investors would face in a partnership.