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Business, 01.10.2019 02:30 debo77

Underwater, inc. had a flood in its plant that destroyed most of its inventory. its records show that beginning inventory was $20,000. underwater made purchases of $250,000 and sales of $300,000 during the year. its normal gross profit percentage is 35%. it can sell some of its damaged inventory for $7,500. the insurance company will reimburse underwater for 75% of its loss. what amount should underwater report as loss from the flood?

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