MontyCompany 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$171,400Sales revenue$695,100Purchases for the year390,000Sales returns22,800Purchase returns30,400Rate of gross profit on net sales30%

Merchandise with a selling price of $18,900remained undamaged after the fire. Damaged merchandise with an original selling price of $14,100had a net realizable value of $5,200.

What is the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage.

Amount of the loss