A fire destroyed a warehouse of the Goren Group, Inc. on May 4, 2021. Accounting records on that date indicated the following: Merchandise inventory, January 1, 2021 Purchases to date Freight-in Sales to date $1,990,000 5,890,000 490,000 9,100,000 The gross profit ratio has averaged 25% of sales for the past four years Required: Use the gross profit method to estimate the cost of the inventory destroyed in the fire. Estimated loss from fire