Wood's warehouse burned down on April 1 of Year 4. The following information (up to the date of the fire) was taken from the Year 4 records of the company: inventory, January 1, $30,000; gross sales, $160,000; purchases, $90,000; sales returns (restored to inventory), $5,000; purchase returns and allowances, $2,000; and freight-in, $8,000. The cost of goods sold and gross profit for the past three years follow. Year Cost of Goods Sold Gross Profit Year 1 Year 2 Year 3 $500,000 460,000 500,000 $125,000 120,000 120,000 Required a. Estimate the cost of the inventory destroyed in the fire, using the average gross profit percentage for the past three years. Note: Assume no inventory was salvagable. Note: Do not use negative signs with any of your answers. Average gross profit percentage for the past three years: 0 % COGAS COGS, estimated $ 0 $ 0 Ending inventory loss $ 0 b. Our estimate in part a would be questionable in all of the following cases except for: