H Hunter Company's Records Indicate the Following Information for the Year

Multiple Choice

H. Hunter Company's records indicate the following information for the year: $$\begin{array} { l r } \text { Merchandise inventory, 1/1 } & \$ 550,000 \\\text { Purchases } & 2,250,000 \\\text { Net sales } & 3,200,000\end{array}$$ On December 31, a physical inventory determined that ending inventory of $500,000 was in the warehouse. H. Hunter's gross profit on sales has remained constant at 30%. H. Hunter suspects some of the inventory may have been taken by some new employees. At December 31, what is the estimated cost of missing inventory?

A) $60,000
B) $100,000
C) $150,000
D) $1,340,000