Yzerman Company lost most of its inventory in a flood in December just before the year end physical inventory was taken. The companys books disclosed the following: Beginning Inventory $200 Sales $850 Purchases for the year 590 Sales returns 100 Purchase returns 40 Rate of gross margin on net sales 20% Merchandise with a selling price of $80 remained undamaged after the flood. Damaged merchandise with an original selling price of $25 had a net realizable value of $15. Compute the amount of loss as a result of the flood, assuming that the company had no insurance coverage.