Ivanhoe Company lost most of its inventory in a fire in November just before the year-end physical inventory was taken. Corporate records disclose the following.

Inventory (beginning) $189,200 Sales $865000

Purchases $669,000 Sales returns 60,800

Purchases returns 42,500 Gross profit % based on net selling price 27%

Merchandise with a selling price of $69100 remained undamaged after the fire, and damaged merchandise has a salvage value of $26,500. The company does not carry fire insurance on its inventory.

Compute the fire loss incurred. (do not use the retail inventory method.)

Inventory fire loss $____________________