ABC Co. purchased XYZ Co. on January 1, 2021. The purchase price was over book value by $350,000 and consisted only of a 7-year royalty agreement. XYZ's retained earnings balance on the date of acquisition was $1,318,120. ABC Co. uses the cost method to account for its pre-consolidation investment in XYZ.

XYZ regularly sells merchandise to ABC. In 2022, inter-company sales amounted to $82,400, with $16,480 of deferred profit remaining in ending inventory. Year-end inter-company receivables/payables amounted to $16,000.

In 2023, inter-company sales amounted to $75,000 with $37,500 of deferred profit remaining in ending inventory. Year-end inter-company receivables/payables amounted to $28,000.

Financial statements of ABC and XYZ for the year ended December 31, 2023 are presented below.

	ABC Co.	XYZ Co.
Sales Revenue	$7,500,000	$2,450,000
Cost of Goods Sold	-5,930,000	-1,950,000
Gross Profit	1,570,000	500,000
Operating Expenses	-1,375,000	-286,000
Income (loss) from subsidiary	176,000	0
Net Income	$371,000	$214,000
Retained Earnings, 1/1/23	$4,045,000	$1,750,000
Net income	371,000	214,000
Dividends	-85,000	-176,000
Retained Earnings, 12/31/23	$4,331,000	$1,788,000
Cash and receivables	$1,750,000	$1,145,600
Inventory	958,000	758,000
Equity Investment	2,247,620
Property, Plant & Equipment (Net)	4,878,380	1,116,590
Total Assets	$9,834,000	$3,020,190
Accounts payable	$980,000	$225,000
Accrued liabilities	142,800	376,500
Notes payable	1,010,200	51,190
Common stock	1,792,000	158,000
Additional paid-in capital	1,578,000	421,500
Retained Earnings, 12/31/23	4,331,000	1,788,000
Total Liabilities and Equities	$9,834,000	$3,020,190

Prepare just the "ADJ" consolidation entry for 2023.