E9-14B (Gross Profit Method) Wineview 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 $210000 Sales $970000Purchases for the year 805000 Sales returns 71000Purchase returns 15000 Rate of gross margin on net sales 20%Merchandise with a selling price of $51000 remained undamaged after the fire. Damaged merchandise with an original selling price of $25000 had a net realizable value of $2500.InstructionsCompute the amount of the loss as a result of the fire assuming that the company had no insurancecoverage.