Problem 7-8 Banff Mountain Equipment Ltd. (Banff) sells skiing and hiking equipment to retailers. After a very successful ski season and just as it was about to commence shipping its hiking equipment for the upcoming season, Banff lost all of its hiking equipment in a fire in March 20x8. Fortunately, the company's insurance policy will cover 80% of the loss suffered in this fire. The loss is to be determined based on the cost of the inventory. Corporate records disclose the following: Inventory January 1, 20x8 Purchases (all on credit) during 20x8 Payments to suppliers for purchases Customs and duty on purchases Sales (all on at retail price Cash collected from accounts receivable $150,000 450,000 440,000 8,000 600,000 580,000 Banff normally realizes a gross profit of 30% on its sales. It accounts for its inventory using a periodic inventory system. Required Calculate the net loss from the fire. Show your calculations. (CGA Adapted)