Yorkins Inc. was organized on January 1, 2016. On December 31, 2017, the company lost most of its inventory in a warehouse fire just before the year end count of inventory. Data from records is disclosed below: 12/31/16 Beginning Inventory $ 0 Purchases 300,000 Purchases returns & allowances 12,000 Sales 305,714 Sales returns & allowances 2,000 12/31/17 $ 60,000 400,000 18,000 495,000 4,000 On January 1, 2017, the company's pricing policy was changed so that the gross profit rate would increase by 3%. Salvaged undamaged merchandise was marked to sell at $ 35,000 while damaged merchandise marked to sell at $ 30,000 had an estimated value of $ 8,000 Determine the company's inventory loss using gross profit method