Vaughn 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 $180,800

Sales revenue

$662,500

Purchases for the year

361,100

Sales returns

24,600

Purchase returns

27,100

Rate of gross profit on net sales 30%

Merchandise with a selling price of $20,000 remained undamaged after the fire. Damaged merchandise with an original selling price of $15,500 had a net realizable value of $5,600. Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage. Amount of the loss ?