On March 15, a Fire Destroyed Interlock Company's Entire Retail

question 56

Multiple Choice

On March 15, a fire destroyed Interlock Company's entire retail inventory.The inventory on hand as of January 1 totaled $1,650,000.From January 1 through the time of the fire, the company made purchases of $683,000, incurred freight-in of $78,000, and had sales of $1,210,000.Assuming the rate of gross profit to selling price is 30%, what is the approximate value of the inventory that was destroyed?

• A)$2,048,000.
• B)$1,486,000.
• C)$1,564,000.
• D)$2,411,000.

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