A company counts its inventory and arrives at a current total of $167,000.

The company accountant fears that some merchandise has been stolen and seeks to estimate the amount of this loss.

Sales for the period have been $600,000.

Gross profit is set by the company at a standard 40% of the sales price.

According to the ledger balances, inventory on the first day of the year was $150,000 and purchases of $390,000 have been made during the period.

What is the best estimate of any theft that has occurred?