Superior developers sells lots for residential development. when lots are sold, superior recognizes income for financial reporting purposes in the year of the sale. for some lots, superior recognizes income for tax purposes when collected. in the prior year, income recognized for financial reporting purposes for lots sold this way was $40 million, which would be collected equally over the next two years. the enacted tax rate was 40%. this year, a new tax law was enacted, revising the tax rate from 40% to 35% beginning next year.

Frost corporation incurred the following transactions during its first year of operations. (assume all transactions involve cash.) 1) acquired $1,900 of capital from the owners. 2) purchased $435 of direct raw materials. 3) used $290 of these direct raw materials in the production process. 4) paid production workers $490 cash. 5) paid $290 for manufacturing overhead (applied and actual overhead are the same). 6) started and completed 250 units of inventory. 7) sold 140 units at a price of $6 each. 8) paid $130 for selling and administrative expenses. the amount of raw material inventory on the balance sheet at the end of the accounting period would be: