1. On April 15 of the current year, a fire destroyed the entire uninsured inventory of a retail store. The following data are available: Sales, January 1 through April 15 Inventory, January 1 (at cost) Purchases, January 1 through April 15 (at cost) Gross profit percentage on sales $300,000 50,000 250,000 25% Using the gross profit method of estimating inventory, the amount of the inventory loss as of April 15 is estimated to be a. $60,000 b. $30,000 c. $75,000 d. $50,000 none of the above e. 2. Caputo Distribution Co. has determined its December 31, 2020 inventory on a Last-In, First-Out (LIFO) basis at $250,000. Information pertaining to that inventory follows: Estimated selling price Estimated cost of disposal Normal profit margin Current replacement cost $255,000 10,000 30,000 225,000 Caputo Distribution Co. records losses that result from applying the lower-of-cost-or-market approach. At December 31, 2020 the loss that Caputo Distribution Co. should recognize is: a. $0 b. $5,000 c. $20,000 d. $25,000 e. none of the above