Bluenose Ltd. took a physical inventory on December 31 and determined that goods costing $ 700,000 were on hand. Not included in the physical count were $ 136,000 of goods purchased from Maritime, f. o. b. shipping point; and $ 126,000 of goods sold to Kelly Ltd. for $130,000, f. o. b. shopping. Both the Bluenose purchase and the Kelly sale were in transit at year end.

In addition, not included in Bluenose's inventory is an amount of $80,000 for inventory that had been sold with an agreement to repurchase in the new year and $80,000 of freight costs on goods purchased.

What amount should Bluenose report as its December 31 inventory?

At what value is inventory carried on the Statement of Financial Position?