The Tuck Shop Began the Current Month with Inventory Costing

Multiple Choice

The Tuck Shop began the current month with inventory costing $10,000,then purchased inventory at a cost of $35,000.The perpetual inventory system indicates that inventory costing $30,000 was sold during the month for $40,000.If an inventory count shows that inventory costing $14,500 is actually on hand at month-end,what amount of shrinkage occurred during the month?

A) $500.
B) $5,000.
C) $14,495.
D) $15,000.