X Ltd. is a newly formed company which estimates that it will need 5 mln initial capital. It proposes at 1st January 2015 to issue 3 000 000 50p ordinary shares at a premium of 40p and 500 000 5% 3 preference shares at par. The balance of the initial requires capital will be raised by an issue of 2% loan stock. The estimated profit before interest for the year ended 31st December 2015 is 400 000. Ordinary dividends are forecast at 3p per share for 2015.

Required: Calculate the estimated retained profits of Xs for the year ended 31st December 2015