LL Martin, Inc. closes its retail locations for a physical count on December 31 of every year. On December 31, 20X1, the physical inventory of all inventory on hand in the stores and warehouse had a cost of $700,000. The following two transactions were excluded from the physical inventory count: 1) $60,000 of goods purchased from Peter Corporation, that were shipped FOB Shipping Point. 2) $45,000 of slightly damaged goods sold to Paul, Inc. for $30,000, shipped FOB Destination. Both the Peter purchase and the Paul sale were in transit at December 31, 20X1. What amount should LL Martin report as its December 31 inventory?