Flynn Company uses a perpetual inventory system and reported $526,000 of inventory at the beginning of the month based on a physical count of inventory. During the month, the company bought $59,200 of inventory and sold inventory that had cost $40,250. At the end of the month, the physical count of inventory shows $528,000 on hand. How much shrinkage occurred during the month?

$16,950

$2,000

$57,200

$23,300