Gross Profit Method: Estimation of Fire Loss On September 28, 2016, a fire destroyed the entire merchandise inventory of Carroll Corporation. The following information is available: Sales, January 1-September 28, 2016 $570,000 Inventory, January 1, 2016 $160,000 Merchandise purchases, January 1-September 28, 2016 $476,000 (including $60,000 of goods in transit on September 28, 2016, shipped FOB shipping point) Markup percentage on cost 25% Required: What is the estimated inventory on September 28,2016 , immediately prior to the fire