18. (4 marks)

XYZ Corporation had a fire on August 1, 2015. The beginning inventory at the start of the fiscal year was $500,000. Purchases up to the date of the fire were $2,000,000.Sales for the year up to the date of the fire were$1,500,000. The company's historical gross profit percentage is 40%.

Required: The dollar amount of the inventory account on the balance sheet at the date of

the fire was$ ___________________.