A fire destroys all of the merchandise of Assante Com- pany on February 10, 2017. Presented below is informa- tion compiled up to the date of the fire. Inventory, January 1, 2017 $ 400,000 Sales revenue to February 10, 2017 1,950,000 Purchases to February 10, 2017 1,140,000 Freight-in to February 10, 2017 60,000 Rate of gross profit on selling price 40% 1. What is the approximate inventory on Feb. 10, 2017? 2. In what situations is the gross profit method an acceptable way to determine the value of ending inventory? Please number your responses