Cullumber Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. Corporate records disclose the following. Merchandise with a selling price of $29,400 remained undamaged after the fire, and damaged merchandise has a net realizable value of $8,000. The company does not carry fure insurance on its inventory. Compute the fire loss incurred. (Do not use the retail inventory method.) Inventory fire loss