Calabro Inc. had a majority of its inventory destroyed by a fire just prior to year-end. The company controller had kept the accounting records current and provided you with the following account balances.

Beginning Inventory	$ 67,500
Purchases for the year	$ 235,700
Purchase Returns	$ 17,500
Sales	$ 526,800
Sales returns	$ 16,200
Gross profit rate on sales	36%

Inventory with a selling price of $18,000 was undamaged by the fire. Damaged inventory with an original selling price of $10,000 had a net realizable value of $4,800.

Instructions:

Compute the amount of the loss caused by the fire, assuming no insurance coverage is carried by the company.