The balance sheet value of a firm's inventory is $$65,000.$ Suppose that the firm

purchases supplies at a cost of $$1,000$ and adds them to inventory. A day later, the

market value of the recently purchased supplies changes to $$3,500.$

Assuming no other changes to inventory, and using the historical cost method, what

is the final balance sheet value of inventory?

Note: Students with prior accounting experience should not apply the monthly

"lower of cost or market" adjustment. This is a day$-$to$-$day fluctuation.