A parent uses the cost method to report its investment in a wholly-owned subsidiary, acquired on January 1, 2016. If it had used the complete equity method, the parent would have reported 2016 equity in net income of $800,000 and 2017 equity in net income of $840,000. The subsidiary's 2016 and 2017 dividends were $160,000 and $185,000, respectively. The subsidiary does not report any other comprehensive income. On the 2017 consolidation working paper, an adjusting entry is necessary to increase the parent’s beginning retained earnings balance by: