Bell Inc. took a physical inventory at the end of the year and determined that $475,000 of goods were on hand. In addition, the following items were not included in the physical count. Bell, Inc. determined that $60,000 of goods were in transit that were shipped f.o.b. destination (goods were actually received by Bell, Inc three days after the inventory count). Bell, Inc. sold $25,000 worth of inventory f.o.b. destination (goods were actually received by the buyer five days after the inventory count). What amount should Bell report as inventory at the end of the year?

a. $475,000. b. $535,000. c. $500,000. d. $560,000.