Grouper Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. The corporations books disclosed the following.

Beginning inventory $158,100

Sales revenue $646,500

Purchases for the year 391,500

Sales returns 22,000

Purchase returns 31,100

Rate of gross profit on net sales 30 %

Merchandise with a selling price of $23,100 remained undamaged after the fire. Damaged merchandise with an original selling price of $15,700 had a net realizable value of $5,500. Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage.

Amount of the loss $