On October 31, a Fire Destroyed PH Inc

Multiple Choice

On October 31, a fire destroyed PH Inc.'s entire retail inventory. The inventory on hand as of January 1 totaled $2,040,000. From January 1 through the time of the fire, the company made purchases of $495,000 and had sales of $1,080,000. Assuming the rate of gross profit to selling price is 40%, what is the approximate value of the inventory that was destroyed?

A) $2,040,000.
B) $2,019,000.
C) $1,455,000.
D) $1,887,000.