Ortiz & Co. reported cost of goods sold of $2,200,000 this year. The inventory account increased by $180,000 during the year to an ending balance of $585,000. What was the cost of merchandise that Ortiz's purchased during the year?

Multiple Choice

• $2,380,000.

• $2,020,000.

• $1,615,000.

• $2,785,000.