Fashion House uses a perpetual inventory system. At the beginning of the year, inventory amounted to \($50,000\). During the year, the company purchased merchandise for \($230,000\) and sold merchandise costing \($245,000\). A physical inventory taken at year-end indicated shrinkage losses of \($4,000\). Prior to recording these shrinkage losses, the year- end balance in the company's Inventory account was:

a. $31,000.

b. $35,000.

c. $50,000.

d. Some other amount.