Stone Pine Corporation, a calendar year taxpayer, has ending inventory of $150,000 on December 31, 2012. During the year 2012, the corporation purchased additional inventory of $375,000. If cost of goods sold for 2012 is $470,000, what was the beginning inventory at January 1, 2012?

beginning inventory = $245,000

Explanation:

given data

ending inventory = $150,000

purchased additional inventory = $375,000

cost of goods sold = $470,000

to find out

beginning inventory

solution

we get here beginning inventory that is express as

beginning inventory = cost of goods sold - purchased additional inventory + ending inventory ... 1

put here value we get

beginning inventory = ($470,000 - $375,000 + $150,000)

beginning inventory = $245,000