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A merchandiser uses a perpetual inventory system

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A merchandiser uses a perpetual inventory system. The beginning Owner, Capital balance of the merchandiser was $130,000. During the year, Sales Revenue amounted to $85,000, Cost of Goods Sold was $40,000, and all other expenses totaled $12,000. Owner withdrawals were $25,000. There were no new capital contributions during the year.

The ending balance of Owner, Capital would be:

a. $130,000.

b. $163,000.

c. $188,000.

d. $138,000.