The profit or loss statement of Elk Ltd includes the following items: $ Net sales 800,000 Freight-in 10,000 Purchases 520,000 Purchase returns and allowances 8,000 Discount received 15,000 Beginning Inventory 100,000 Operating expenses 300,000 Gross profit 320,000 Closing inventory would be

a.

$132,000

b.

$150,000

c.

$127,000

d.

$142,000

e.

None of the above