Buffalo Company Reported a December 31 Ending Inventory Balance of $412,000

Multiple Choice

Buffalo Company reported a December 31 ending inventory balance of $412,000. The following additional information is also available:
• ^{The ending inventory balance of $412,000 did not include goods costing $48,000 that were} purchased by Buffalo on December 28 and shipped FOB destination on that date. Buffalo did not receive the goods until January 2 of the following year.
• ^{The ending inventory balance of $412,000 included damaged goods at their original cost of}
$38,000. The net realizable value of the damaged goods was $10,000.
Based on this information, the correct balance for ending inventory on December 31 is:

A) $374,000
B) $422,000
C) $460,000
D) $384,000
E) $438,000