Blue Spruce Corp. took a physical inventory on December 31 and determined that goods costing $165,000 were on hand. Not include in the physical count were $23,800 of goods purchased from Pelzer Corporation, FOB shipping point, and $21,000 of goods sold to Alvarez Company for $31,800, FOB destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end. What amount should Blue Spruce report as its December 31 inventory? Inventory, December 31 $