Sunland Inc. took a physical inventory at the end of the year and determined that $770000 of goods were on hand. In addition, Sunland, Inc. determined that $61000 of goods that were in transit that were shipped f.o.b. shipping point were actually received two days after the inventory count and that the company had $90000 of goods out on consignment. What amount should Sunland report as inventory at the end of the year?

a) 770000.

b) $850000.

c) $860000.

d) $921000.