Rasheed Wallace Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. The corporations books disclosed the following.

Beginning Inventory	$172,500	Sales Revenue	$656,900
Purchase for the year	$450,500	Sales Returns	$25,630
Purchase Returns	$32,000	Rate of gross profit on net sales	20%

Merchandise with a selling price of $23,340 remained undamaged after the fire. Damaged merchandise with an original selling price of $15,890 had a net realizable value of $5,900. Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage.

Amount of the loss: $___________