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Inventory Loss from Flood

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On March 17, 2006, a flood destroyed the entire inventory of Beat Co. The following information is available from its accounting records:

Inventory, December 31, 2005 $208,000
Purchases, Jan. 1 - Mar. 17 420,000
Sales, Jan. 1 - Mar. 17 600,000
Normal gross margin on sales 40%

Amount of Inventory salvaged from the flood $73,000

Insurance proceeds received to cover the inventory loss $150,000

Compute the amount of inventory loss from the flood.

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