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$162,800Sales revenue$712,400Purchases for the year353,000Sales returns22,600Purchase returns30,300Rate of gross profit on net sales40% Merchandise with a selling price of $21,000remained undamaged after the fire. Damaged merchandise with an original selling price of $13,900had a net realizable value of $5,300.

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