MOCK EXAMS 4 BPP KIT PG 351

Hello sir im having a problem in sec B but only a part i don't understand. This is the question. The following is an extract from Diaz co trial balance as at 31dec 20X8 : INVENTORY AT 31DEC debit $8.6m TRADE RECEIVABLES debit: $6.2m 5%LOAN NOTES credit $9m The inventory count was completed on 31 december 20X8 but two issues have been noted. First, product with a sales values of $0.6m had been incorrectly excluded from the count. Second, items costing $0.2m which had been included in the count was damaged and could only be sold for 50% of normal selling price. Diaz co makes a profit markup of 50%on both these items. What is the correct amount of inventory to be recognised in diaz co financial statement as at 31dec 20X8?