On May 18th Curly Jackson Company suffered a loss in its warehouse and has asked you to help them in determining the amount of inventory that was lost in the fire for insurance purposes. The following data was salvaged from the accounting records: CJ Company has a normal gross profit percentage of 25%. Beginning Inventory for the month of May was $120,000, purchases so far for the month totaled $300,000 and sales for May prior to the fire were $440,000. Some of the inventory was not damaged in the fire, the inventory not damaged in the fire had a selling price of $40,000. Calculate the amount of inventory that was lost in the fire, show all calculations.