Goosen Company has determined its year-end inventory on a FIFO basis to be $708,000. Information pertaining to that inventory is as follows:

Selling price	$	735,000
Costs to sell		37,400
Normal profit margin		87,500
Replacement cost		635,000

What should be the reported value of Goosen's inventory?

Multiple Choice

• $697,600.

• $615,000.

• $635,000.

• $708,000.