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

Beginning inventory Purchases for the year Purchase returns $187,900 453,400 Sales revenue Sales returns Rate of gross profit on net sales $679,000 25,180 30 % 33,300 Merchandise with a selling price of $23,550 remained undamaged after the fire. Damaged merchandise with an original selling price of $15,180 had a net realizable value of $6,100. Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage. Amount of the loss 126776