A flash flood swept through Dad, Inc.s warehouse on May 1. After the flood, Hats accounting records showed the following:

Inventory, January 1		$35,000
Purchases, January 1 through May 1		200,000
Sales, January 1 through May 1		250,000
Inventory not damaged by flood		30,000
Gross profit percentage on sales		40%

What amount of inventory was lost in the flood?

$55,000

$85,000

$120,000

$150,000