The following balances were reported by Mall Co. at December 31, 2006 and 2005:

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12/31/06

12/31/05

Inventory

$260,000

$290,000

Accounts payable

75,000

50,000

Mall paid suppliers $490,000 during the year ended December 31, 2006. What amount should Mall report for cost of goods sold in 2006?

  1. $545,000
  2. $495,000
  3. $485,000
  4. $435,000