Question #3: Gross Profit Method An earthquake destroyed the New Hall Corporation's warehouse on March 10, 2020. Only goods with a normal selling price of $23,000 and a net realizable value of $15,000 were saved. The following information was available from the corporation's records: $ Inventory 1/1/20 Purchases 1/1/20-3/10/20 Purchases Returns Freight-in Sales 1/1/20 -3/10/20 Sales Discounts Sales Returns 500,000 1,240,000 19,000 28,000 1,700,000 30,000 10,000 Also, for the prior 5-years, New Hall Corporation had an average gross profit of $4,200,000 and net sales of $12,000,000. Required: Estimate New Hall Corporation's inventory loss from the earthquake using the gross profit method