Jensen Co.s accounting records include the following information.

Item	Amount
Inventory, January 1, 2020	$1,300,000
Purchases during 2020	5,000,000
Sales during 2020	6,400,000

A physical inventory taken on December 31, 2020, resulted in an ending inventory of $1,150,000. Historically, Jensen's gross margin on sales has remained constant at 25%. Jensen suspects that an unusual amount of inventory may have been damaged and disposed of without appropriate tracking.

At December 31, 2020, what is the estimated cost of missing inventory?

$200,000

$350,000

$400,000

$50,000

$450,000