Opera Corp. uses dollar-value LIFO method of computing its inventory cost. Data for the past three years is as follows:

Year ended December 31		Inventory at End-of-year Prices		Price Index
2016		$ 650,000			1.00
2017			1,260,000			1.05
2018			1,350,250			1.10

What is the 2017 inventory balance using dollar-value LIFO?

$1,227,500.

$1,260,000.

$1,257,500.

$1,285,000.