Martinez 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.

Inventory (beginning)		$ 81,100		Sales revenue		$418,600
Purchases		286,900		Sales returns		21,200
Purchase returns		27,700		Gross profit % based on net selling price		38	%

Merchandise with a selling price of $30,500 remained undamaged after the fire, and damaged merchandise has a net realizable value of $7,500. The company does not carry fire insurance on its inventory. Compute the amount of inventory fire loss. (Do not use the retail inventory method.)

1. What is the Inventory fire loss?