Howards Supply Co. suffered a fire loss on April 20, 2016. The companys last physical inventory was taken January 30, 2016, at which time the inventory totaled $220,000. Sales from January 30 to April 20 were $600,000 and purchases during that time were $450,000. Howards consistently reports a 30% gross profit. The estimated inventory loss is:
A.	$490,000.
B.	$238,000.
C.	$250,000.
D.	None of these answer choices are correct.
Answer:C
Howards Supply Co. suffered a fire loss on April 20, 2016. The companys last physical inventory was taken January 30, 2016, at which time the inventory totaled $220,000. Sales from January 30 to April 20 were $600,000 and purchases during that time were $450,000. Howards consistently reports a 30% gross profit. The estimated inventory loss is:
A.	$490,000. B.	$238,000. C.	$250,000. D.	None of these answer choices are correct.