Determine the value of stock as at 31st December?

Given:

Sales #180,000
Stock 1/1 # 25,000
Purchases #110,000
Sales returns # 1000
Purchases returns # 1,500
Gross profit # 58,000

A. #8000
B. #9,500
C. #12,500
D. #15,500

Correct Answer:

Option C – #12,500