On 1/1/2017 Santiago Corp purchased an oil well for a total historical cost of $1,200,000. Santiago estimates total recoverable units for the well of 100,000 barrels and estimates the well to have residual value of $300,000. Assuming Santiago extracts 18,000 barrels of oil during 2017, none of which is sold that year, what is the dollar value of oil inventory that Santiago will report on its balance sheet?