Question I1: Loss estimation using gross profit method (12 points) Astaire Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. The fim's books disclosed the following Beginning inventory $160,000 20,000 650,000 Purchases for the year 450,000 Freight-in Purchase discounts 30,000 Sales Sales returns Gross profit margin 40% 50,000 Merchandise with a selling price of $40,000 remained undamaged after the fire. Damaged merchandise with an original selling price of $26,000 had a net realizable value of $8,000 Required: Compute the amount of loss as a result of the fire, assuming the firm had no insurance coverage Please write your answer in the space below