Stone Pine Corporation, a calendar year taxpayer, has ending inventory of $150,000 on December 31, 20X2. During the year 20X2, the corporation purchased additional inventory of $375,000. If cost of goods sold for 20X2 is $470,000, what was the beginning inventory at January 1, 20X2?

Answer:beginning inventory is $245000Step-by-step explanation:Given dataending inventory = $150,000purchased additional inventory = $375,000goods sold = $470,000to find outbeginning inventory solutionaccording to question beginning inventory is calculated by this formula i.e.beginning inventory = ( cost of goods sold  + ending inventory ) - amount of inventory purchase  .....................1now put all value cost of goods sold, ending inventory and amount of inventory purchase in equation 1 and we get beginning inventorybeginning inventory = ( cost of goods sold  + ending inventory ) - amount of inventory purchasebeginning inventory = ( 470000  + 150000 ) - 375000beginning inventory  = 245000so beginning inventory is $245000