For the 2021 year, the following data were taken from the accounting records. $ Sales 900,000 Freight-out 3,600 Sales returns and allowances 30,000 Purchases 500,000 Selling expenses 4,975 Purchase returns and allowances 8,000 Depreciation expense 8,025 Freight-in 2,000 Inventory at 1/7/20 90,000 Discount allowed 2,800 Inventory at 30/6/21 130,000 Gross profit for the current year is:

Select one:

a. $396,600

b. $404,625

c. $416,000

d. $418,000

e. None of the above