Jep Co.s accounting records include the following information.

Item	Amount
Inventory, January 1, 2020	$1,000,000
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 $1,050,000. Jep's markup on cost has remained constant at 32% in recent years. Jep 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?

Select one:

a. $151,515

b. $336,000

c. $598,000

d. $101,514

Please answer correctly and ASAP. Thank you