Stellar 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		$155,300		Sales revenue		$655,700
Purchases for the year		368,400		Sales returns		23,800
Purchase returns		31,200		Rate of gross profit on net sales		30	%

Merchandise with a selling price of $21,800 remained undamaged after the fire. Damaged merchandise with an original selling price of $13,500 had a net realizable value of $5,100.

Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage.