Wallace Company lost most of its invenotry in a fire in December just before the year end physical invenotry was taken. The corporation's books disclosed the following.

Beginning inventory $170,000

Purchases for the year $390,000

Purchase returns $30,000

Sales revenue $650,000

Sales returns $24,000

Rate of gross profit on net sales 40%

Merchandise with a selling price of $21,000 remained undamaged after the fire. Damaged merchandise with an orginial selling price of $15,00 had 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.