Sullivan Corporation has determined its year-end inventory on a FIFO basis to be $500,000. Information pertaining to that inventory is as follows:
Selling price$520,000
Disposal costs30,000
Normal profit margin60,000
Replacement cost440,000
What should be the carrying value of Sullivan's inventory if the company prepares its financial statements according to International Financial Reporting Standards?
A. $430,000
B. $500,000
C. $440,000
D. $490,000