Pronghorn Company 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 $197,000 Sales $889,000 Purchases for the year 743,000 Sales returns 76,000 Purchase returns 14,000 Rate of gross margin on net sales 20 % Merchandise with a selling price of $54,000 remained undamaged after the fire. Damaged merchandise with an original selling price of $23,000 had a net realizable value of $2,800. Compute the amount of the loss as a result of the fire, assuming that the company had no insurance coverage. Amount of the loss $