Let the purchase price be X yuan, then establish the equation: (1.4x*0.9-x)=260, and calculate x= 1000 yuan.

Note: 1.4 is 40% higher than the original price, that is, the selling price is 1.4 times the purchase price, and then it is 10% lower than the first selling price, that is, the discount is 10%, that is, 0.9.