Shamrock 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		$179,500		Sales revenue		$640,200
Purchases for the year		402,500		Sales returns		25,800
Purchase returns		31,500		Rate of gross profit on net sales		20	%

Merchandise with a selling price of $21,200 remained undamaged after the fire. Damaged merchandise with an original selling price of $15,800 had a net realizable value of $5,700. Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage.

Amount of the loss