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On July 5, 2016, a fire destroyed the entire inventory of Kinard Music Mart. The following information is available from its accounting records: Inventory, January 1, 2016 $211,000 Purchases, Jan. 1-July 5 500,000 Sales, Jan. 1-July 5 900,000 Normal gross margin 30% Required: Compute the estimated cost of inventory lost in the fire.
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