Given the following items and costs as of the balance sheet date, determine the value of Faltron Company's merchandise inventory.

- $1,450 goods sold by Faltron to another company. The goods are in transit and shipping terms are FOB destination.

- $2,900 goods sold by another company to Faltron. The goods are in transit and shipping terms are FOB destination.

- $4,350 owned by Faltron but in the possession of another company, the consignee.

- Damaged goods owned by Faltron that originally cost $5,800 but now have a $725 net realizable value.

$7,250

$6,525

$7,975

$9,425

$14,500