Goiania, Inc. was vandalized during a riot in their community and a lot of their inventory was destroyed. In fact, only $80,000 was still in good enough condition to sell. If the company had beginning inventory of $503,000, net purchases of $1,811,000, net sales of $3,240,000, and an average gross profit or sales margin ratio of 38%, how much inventory would they report was destroyed on their insurance claim if they use the Gross Profit Method?

$2,008,800

$305,200

$80,000

$225,200