The following information was taken from the 20B income statement of Milburn Company: Pretax income, $12,000; Total operating expenses (not including income taxes), $20,000; Sales revenue, $120,000; Beginning inventory, $8,000; and Purchases, $90,000. Compute the amount of the ending inventory .
a. $88,000.
b. $10,000.
c. $ 8,000.
d. $18,000.
e. None of the above is correct.