Pristine Thread Co. encountered a fire on March 12 where some of the inventory was destroyed. A physical count of inventory after the fire shows $56,000 still on hand. The company also had beginning inventory on January 1 of $197,000 and the following total amounts for the year up to March 12.

• Sales revenue of $715,000
• Purchases of $503,000
• Freight-in of $41,000

Assuming that the inventory has a 34% gross profiton cost, estimate the amount of inventory destroyed using thegross profit method.Round all amounts to the nearest dollar and percentages to 1 decimal place (e.g., 5.3% or 0.053). Please put your answer inboldfont. To receive credit,you must show your work.