Grouper Corporation follows IFRS. The company's fiscal year end was December 31. Following the end of the company's fiscal year, but prior to the authorization for release of financial reporting for the fiscal year, two significant events took place: (a) On January 12, vandals broke into the company's warehouse and caused major damage to both the facility and the inventory. Damages have been assessed at $232,500.

Identify the effect that it will have on Grouper's 2023 net income. Ignore taxes. Net income will by $