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Assume that the total inventory counted at the end of the year was $ 7 5 , 0 0 0 . Excluded from the count

Assume that the total inventory counted at the end of the year was $75,000. Excluded from the count were purchases of $5,000 in transit under FOB destination terms. What is the cost of inventory reported on the balance sheet?
a. $60,000
b. $80,000
c. $70,000
d. $75,000

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