Great Company purchased 80 percent of the common stock of Meager Corporation on January 1, \(20 \mathrm{X} 4\), for \(\$ 280,000\). The corporate controller of Great Company has lost the consolidation files for the past three years and has asked you to compute the proper retained earnings balances for the consolidated entity at January 1, 20X8, and December 31, 20X8. The controller has been able to determine the following:

1. The book value of Meager's net assets at January 1. \(20 \times 4\), was \(\$ 290.000\) and the fair value of its net assets was \(\$ 325,000\). This difference was due to an increase in the value of equipment. All depreciable assets had a remaining life of 10 years at the date of combination. At December 31, 20X8, the management of Great Company reviewed the amount attributed to goodwill as a result of its purchase of Meager Corporation common stock and concluded an impairment loss of \(\$ 14,000\) should be recognized in 20X8.

2. Great Company uses the basic equity method in accounting for its investment in Meager Corporation.

3. Meager Corporation reported net income of \(\$ 30,000\) and paid dividends of \(\$ 20,000\) each year since Great Company purchased its ownership.

4. Great Company reported retained earnings of \(\$ 450,000\) in its December \(31,20 \times 7\), balance sheet. For 20X8, Great Company reported operating income of \(\$ 65,000\) and paid dividends of \(\$ 45,000\).

5. Meager Corporation sold land costing \(\$ 40,000\) to Great Company for \(\$ 56,000\) on December 31, 20X7.

6. On January 1, 20X6, Great Company sold depreciable assets with a remaining useful life of 10 years to Meager Corporation and recorded a \(\$ 22,000\) gain on the sale.

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Compute the appropriate amounts to be reported as consolidated retained earnings at January 1, 20X8, and December 31, 20X8.