Ho Designs experienced the following events during Year 1, its first year of operation: 1. Started the business when it acquired $65,000 cash from the issue of common stock. 2. Paid $28,000 cash to purchase inventory. 3. Sold inventory costing $16,900 for $33,000 cash. 4. Physically counted inventory showing $10,900 inventory was on hand at the end of the accounting period. Required: a. Determine the amount of the difference between book balance and the actual amount of inventory as determined by the physical count