Question: . ( 1 0 % ) Tarantula SA lost most of its inventory in a fire in December just before the year - end

.(10\%) Tarantula SA lost most of its inventory in a fire in December just before the year-end physical inventory was taken. The company's books disclosed the following. Merchandise with a selling price of \(\$ 20,000\) remained undamaged after the fire. Damaged merchandise with an original selling price of \(\$ 15,000\) had a net realizable value of \(\$ 5,250\). Instructions a. Compute the amount of the estimated gross profit. (4\%) b. Compute the amount of the loss as a result of the fire, assuming that the company had no insurance coverage. (\(5\%\))
. ( 1 0 \ % ) Tarantula SA lost most of its

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