Madison Co. has determined its year-end inventory on a LIFO basis to be $617,000. Information pertaining to that inventory is as follows:

Selling price	$	737,000
Costs to sell		38,400
Normal profit margin		88,500
Replacement cost		637,000

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

Multiple Choice

• $617,000.

• $637,000.

• $698,600.

• $610,100.