On October 31, a fire destroyed Pharoah Inc.'s entire retail inventory. The inventory on hand as of January 1 totaled $2740000. From January 1 through the time of the fire, the company made purchases of $672000 and had sales of $1456000. Assuming the rate of gross profit to selling price is 25%, what is the approximate value of the inventory that was destroyed? $1648000. $2320000. $2740000. $3048000.