Diane Company showed the following information on December 31,2014:     Cost   Retail Inventory, January 1    560,000        1,400,000 Sales      10,000,000 Purchases        4,960,000      10,320,000 Freight in          150,000 Markup   1,000,000 Markup cancelation     120,000 Markdown         500,000 Markdown cancelation 100,000 Estimated normal shrinkage is 2.5% of sales. Diane used the average cost retail inventory method in estimating the value of inventory. What is the estimated cost of inventory on December 31,2014? 460,000 C.       897,000 877,500 D.       990,000

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