Mallard's June 30 inventory was destroyed by fire. Its January 1 inventory was $300,000 and purchases for January through June totalled $803,000. Sales for the same period were $900,000. Mallard's normal gross profit percentage is 25%. Using the gross profit method, the estimated amount of the June 30 inventory that was destroyed was: $1,100,000 $225,000 $425.000 $675.000