Royal Company Uses the Periodic Inventory Method The Amount of Gross Margin Appearing on the Income Statement

Royal Company uses the periodic inventory method. The following balances were drawn from the accounts of Royal Company prior to the closing process: $\begin{array}{ll}\text { Sales Revenue } & \$ 3,000 \\\text { Beginning Inventory Balance } & \$ 800 \\\text { Purchases } & \$ 2,000\\\text { Transportation-in } & \$ 100 \\\text { Purchases Discounts } & \$ 50 \\\text { Ending Inventorv Balance } & \$ 900\end{array}$ The amount of gross margin appearing on the income statement should be:

A) $900.
B) $1,050.
C) $1,950.
D) $2,850.