Opera Corp. uses the 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 2016 inventory balance using dollar-value LIFO?

$1,350,000.

$619,040.

$1,227,270.

$650,000.