Ho Designs experienced the following events during Year 1, its first year of operation: 1. Started the business when it acquired $70,000 cash from the issue of common stock. 2. Paid $41,000 cash to purchase inventory. 3. Sold inventory costing $37,500 for $56,200 cash. 4. Physically counted inventory showing $3,200 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