Exercise 3 (Freezing Stone): Freezing Stone uses the conventional retail method to estimate its ending inventories. The company records sales net of employee discounts. The following partial data has been summarized for the year ended December 31, 2018: Cost Retail Inventory, January 1 $ 525,460 $ 796,000 Purchases 1,472,000 2,404,000 Net markups 56,900 Net markdowns 48,800 Normal spoilage 43,800 Employee discounts 76,200 Net sales 2,258,000 What is ending inventory for the year ended December 31, 2018?