Redro's Cars is a car dealer and VAT vendor, but to be specific it trades only in sports cars. Redro adopted the specific identification method in order to value inventory. On 28 February 2020 Redro's had two sports cars on hand: a 2016 red Porsche with a VAT inclusive price of R644000 and a 2018 red Ford Mustang with a capitalized cost price of R925000.

The 2016 red Porsche was purchased on 1 February 2020 and it was only discovered on 27February 2020 that the engine had a defect. The engine defect can be corrected at a cost of R140000, exclusive of VAT.

All sales agents are awarded with a compulsory 8% commission on the VAT exclusive selling price, when any car sale is concluded. The expected selling prices, inclusive of VAT, for the vehicles are R805000 for the Porsche and R1610000 for the Ford Mustang.

Determine the value of inventory of Redro's as at 28 February 2020 as it will be disclosed in the statement of financial position.