Exercise 9-16 Crane Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. The corporation's books disclosed the following. Beginning inventory$170,200Sales revenue Purchases for the year 425,600 Sales returns Purchase returns $658,800 23,300 32,500 Rate of gross profit on net sales 40 % Merchandise with a selling price of $22,000 remained undamaged after the fire. Damaged merchandise with an original selling price of $15,200 had a net realizable value of $4,900 Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage. Amount of the loss