On July 8, a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale Corporation. The following information is available:

Sales, January 1 through July 8	$	700,000
Inventory, January 1		130,000
Purchases, January 1 through July 8		640,000
Gross profit ratio		30	%

What is the estimated inventory on July 8 immediately prior to the fire?

		A) $192,000.
		B) $490,000.
		C) $510,000.
		D) $280,000.