Montana Co. has determined its year-end inventory on a FIFO basis to be $615,000. Information pertaining to that inventory is as follows:
Selling price $630,000
Disposal costs 34,000
Normal profit margin 71,000
Replacement cost 537,000
What should be the carrying value of Montana's inventory?
a) $525,000.
b) $615,000.
c) $596,000.
d $537,000.