On October 31, a fire destroyed KPH Co.'s entire retail inventory. The inventory on hand as of January 1 totaled $2,720,000. From January 1 through the time of the fire, the company made purchases of $660,000 and had sales of $1,440,000. Assuming the rate of gross profit to selling price is 40%, what is the approximate value of the inventory that was destroyed?

Group of answer choices

$1,940,000.

$2,516,000.

$2,692,000.

$2,720,000.