Data below for the year ended December 31, 2016, relates to Houdini Inc. Houdini started business January 1, 2016, and uses the LIFO retail method to estimate ending inventory.

	Cost	Retail
Beginning inventory	$86,000	$124,000
Net purchases	432,000	620,000
Net markups		40,000
Net markdowns		60,000
Net sales		555,000

Estimated ending inventory at retail is:

$169,000.

$45,000.

$105,000.

$225,160.

Montana Co. has determined its year-end inventory on a FIFO basis to be $600,000. Information pertaining to that inventory is as follows:

Selling price	$620,000
Costs to sell	30,000
Replacement cost	520,000

What should be the reported value of Montana's inventory?

$520,000.

$600,000.

$620,000.

$590,000.