28. On October 15, 2023, a fire destroyed all the stock of equipment of Modern Company
in its rented stockroom. The records of the firm showed the following information:
Inventory- January 1
Sales, January 1- October 15
Sales return and allowance
Purchases, January 1- October 15
Purchase return and allowance
Cost of stock in display room, not destroyed
Summary of prior years' sales:
500,000
3,840,000
40,000
3,560,000
60,000
320,000
Sales
Gross profit
2022
3,700,000
1,295,000
2021
3,500,000
1,050,000.
2020
3,000,000
750,000
How much is the estimated cost of merchandise lost in the fire on October 15, 2023?
a. 1,400,000
b. 1,720,000
C. 1,530,000
d. 1,210,000