Over the past 4 years the gross profit rate for Davidson Company was 26%. Last week a fire destroyed all of Davidson’s inventory. Luckily, all the records for Davidson were in a fireproof safe and indicated the following facts:

Inventory (Januray 1, 201X)	$39,100
Sales	128,500
Sales Returns	3,200
Purchases	77,900
Purchases Returns and Allowances	2,200

Estimate the cost of inventory that was lost in the fire.