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 $680,000.From January 1 through the time of the fire, the company made purchases of $165,000 and had sales of $360,000.Assuming the rate of gross profit to selling price is 40%, what is the approximate value of the inventory that was destroyed?

A) $680,000.
B) $673,000.
C) $485,000.
D) $629,000.