Reena Corp. 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 $ 325 Sales $ 775 Purchases for the year 525 Sales returns 25 Purchase returns 50 Gross margin on sales 40% Merchandise with a selling price of $50 remained undamaged after the fire. Damaged merchandise with an original selling price of $75 had a net realizable value of $20. Required: Calculate the amount lost because of the fire, assuming that the corporation had no insurance coverage