The following information is available for October for Pharoah Company.

Beginning inventory	$320000
Net purchases	1040000
Net sales	2080000
Percentage markup on cost	66.67%

A fire destroyed Pharoahs October 31 inventory, leaving undamaged inventory with a cost of $20000. Using the gross profit method, the estimated ending inventory destroyed by fire is

$554667.

$720000.

$534667.

$92000.