At 30 September 2003 the closing inventory of a company amounted to $386,400.
The following items were included in this total at cost:

       (1) 1,000 items which had cost $18 each. These items were all sold in October 2003 for $15 each, with selling
             expenses of $800.
       (2) Five items which had been in inventory since 1973, when they were purchased for $100 each, sold in
             October 2003 for $1,000 each, net of selling expenses.

What figure should appear in the company’s balance sheet at 30 September 2003 for inventory?

A    $382,600
B    $384,200
C    $387,100
D    $400,600

A
386,400 minus loss on 1 3,800