Question 2: Wineview 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 $210,0 Sales $970,000 00 Purchases for the year 805,000 Sales returns 71.000 Purchase returns 15,000 Rate of gross margin on net 20% sales Merchandise with a selling price of $51,000 remained undamaged after the fire. Damaged merchandise with an original selling price of $25,000 had a net realizable value of $2,500. Instructions Compute the amount of the loss as a result of the fire, assuming that the company had no insurance coverage