Food Depot Ltd. assembled the following information at the end of the current reporting period:

Sales revenue	$56,400
Beginning inventory	21,250
Purchases	9,000
Purchase returns	600
Freight-in	950
Selling expense	15,750
Mark-up on cost (estimated)	25 percent

If the gross margin method is used to estimate ending inventory, what amount should be reported as pre-tax income or loss?

Multiple Choice

$4,470 loss

$15,975 income

$26,870 income

$29,370 income

$5,345 loss