Lind Bales was at home watching television when he received a call from the fire department telling him his store had burned. His business was a total loss. The insurance company asked him to prove his inventory loss. For the year, until the date of the fire, Bales's company had salt s of $450,000 and purchases of $280,000. Freight in amounted to

$13,700, and the beginning inventory was $45,000. It was Bales's custom to price goods to achieve a gross margin of 40 percent. Compute Bales's estimated inventory- loss.