PR:8-12 Dollar-Value LIFO Retail and Fire Loss Golden Company adopted the dollar-value retail LIFO method on January 1, 2016. The following information relates to the following 2 +years: 2016 2017 (through September 7) Cost Retail Cost Retail Inventory, January 1 $40,000 $ 90,000 Purchases $160,000 $350,000 Purchases 100,000 210,000 Sales 280,000 Sales I 200,000 Net additional markups 40,000 Net additional markups 20,000 Net markdowns 70,000 Net markdowns 40,000 In addition, the following price indexes are available: January 2016 100 December 2016 106 September 2017 110 On September 8, 2017, a fire destroyed the inventory except for goods in transit (properly recorded), FOB shipping point, at a cost of $8,000, and undamaged goods salvaged from the fire which had a retail value of $10,000. Required: Compute the cost of the inventory destroyed in the fire. Round the cost-to-retail ratio to 3 decimal places and the final answers to the nearest dollar. Enter all amounts as positive numbers. GOLDEN COMPANY Computation of cost of the inventory destroyed in fire