Tamarisk Corporation follows IFRS. The companys fiscal year end was December 31, 2020. Following the end of the companys fiscal year, but prior to the release of financial reporting for the 2020 fiscal year, two significant events took place:

On January 12, vandals broke into the companys warehouse and caused major damage to both the facility and the inventory. Damages have been assessed at $262,500. Identify the effect that it will have on Tamarisk 2020 net income. Ignore taxes. (Do not leave any answer field blank. Enter 0 for amounts.)

Net income will (increase/not change/decrease) by $__________________