BFR Inc. took a physical inventory at the end of the year and determined that $840,000 of goods were on hand. In addition, the following items were not included in the physical count. BFR determined that $96,000 of goods purchased were in transit. The goods were shipped f.o.b. destination and were received by the company three days after the inventory count. The company had also sold $40,000 worth of inventory that was shipped f.o.b. destination and had not been received by the buyer as of year-end. What amount should BFR report as inventory at the end of the year?