Each item below describes an amount(s) not reflected in the financial statements of Drake Company. Select from the option list provided the amount, if any, required to be recognized in Drake's financial statements based on a calendar year for Year 4. Each choice may be used once, more than once, or not at all. Description Amount 1. Drake owns a small warehouse located on the banks of a river in which it stores inventory worth approximately $500,000. Drake is not insured against flood losses. The river last overflowed its banks 20 years ago.