Underwater, Inc. had a flood in its plant that destroyed most of its inventory. Its records show that beginning inventory was $20,000. Underwater made purchases of $250,000 and sales of $300,000 during the year. Its normal gross profit percentage is 35%. It can sell some of its damaged inventory for $7,500. The insurance company will reimburse Underwater for 75% of its loss. What amount should Underwater report as loss from the flood? Multiple Choice $75,000 $50,625 $24,375 O $16,875