Mercado Ltd started its business with $21,000$ in cash on $1$ Jan $201,$ and immediately

purchased $400$ items of inventory at the price of $50$ per item and put the remaining $1,000$

in a bank account without any fees or interests.

On $1$ July $201,$ it sold all items at the price of $80$ per item and received the payment in

cash.

The general price index during the year was as follows:

$01-$Jan $01-$Jul $31-$Dec

General price

index

What is the cash balance at the year end $31$ Dec $20$X$1$ under current purchasing power

accounting?

Select one:

a$.41,500$

b$.40,000$

C$.32,000$

d$.33,000$

e$.1,000$