Pina 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		$183,500		Sales revenue		$683,600
Purchases for the year		358,400		Sales returns		22,800
Purchase returns		30,000		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 $15,000 had a net realizable value of $5,800. Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage.

Amount of the loss