Ace Company reported the following information for the current year:
Sales: $417,000
Cost of goods sold:
Beginning inventory: $142,500
Cost of goods purchased: $280,000
Cost of goods available for sale: $422,500
Ending inventory: $151,000
Cost of goods sold: $271,500
Gross profit: $145,500
The beginning inventory balance is correct. However, the ending inventory figure was overstated by $27,000. Given this information, the correct gross profit would be:
Multiple Choice:
$118,500
$145,500
$172,500