Accounting · Events After the Reporting Period

Harry Co has a reporting date of 31 December 20X4. The financial statements were authorized for issue on 15 March 20X5. The following events occurred between the reporting date and the date of authorization: - 31 January 20X5: A major credit customer, who owed Harry Co $450,000 at 31 December 20X4, went into liquidation. The customer had been experiencing well-documented financial difficulties for several months prior to the year-end. - 10 February 20X5: A batch of specialized inventory, which had cost $210,000 and was included in the year-end count at that value, was sold for a net price of $180,000. - 20 February 20X5: A fire destroyed one of Harry Co's warehouses. The carrying amount of the warehouse and its contents was $1.5 million. The company is fully insured, but its going concern status is not in doubt. - 28 February 20X5: The directors proposed a final dividend of $0.05 per share. What is the total reduction to the profit for the year ended 31 December 20X4 required by these events?