Haskell Corporation. has determined its year-end inventory on a FIFO basis to be $795,000. Information pertaining to that inventory is as follows:

Selling price	$820,000
Disposal price	40,000
Normal profit margin	75,000
Replacement cost	770,000

What should be the carrying value of Sullivan's inventory if the company prepares its financial statements according to International Financial Reporting Standards?

$705,000

$770,000

$795,000

$780,000