Deluxe Auto Parts holds inventory all over the world Assume
Deluxe Auto Parts holds inventory all over the world. Assume that the records for one auto part show the following:
Beginning Merchandise Inventory .......... $ 220,000
Net Cost of Purchases .............. 800,000
Net Sales Revenue ................ 1,100,000
Gross Profit Percentage .............. 45%
Suppose this inventory, stored in the United States, was lost in a fire. Estimate the amount of the loss to Deluxe Auto Parts. Use the gross profit method.

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