On July 5, 2018, a Fire Destroyed the Entire Inventory

Essay

On July 5, 2018, a fire destroyed the entire inventory of Kinard Music Mart. The following information is available from its accounting records: $$\begin{array} { | l | r | } \hline \text { Inventory, January 1, 2018 } & \$ 211,000 \\\hline \text { Purchases, Jan. 1 - July 5 } & 500,000 \\\hline \text { Sales, Jan. 1 - July } 5 & 900,000 \\\hline \text { Normal gross margin } & 30 \% \\\hline\end{array}$$ Required:
Compute the estimated cost of inventory lost in the fire.