Stallman company took a physical inventory on December 31 and determine that goods costing 200,000 were on hand. Not included in the physical count were 25,000 of goods purchased from Pelzer corporation, FOB shipping point, and 22,000 of goods sold to Alvarez Company for 30,000, FOB destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end. What amount should Stallman report as its December 31 inventory?