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Windsor Company lost most of its inventory in a fire in December just before the year-end
physical inventory was taken. Corporate records disclose the following. Merchandise with a
selling price of $30,400 remained undamaged after the fire, and damaged merchandise has a net
realizable value of $8,800. The company does not carry fire insurance on its inventory. Compute
the fire loss incurred. (Do not use the retail inventory method.) Inventory fire loss $

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