Anderson Company, a 90% owned subsidiary of Philbin Corporation, transfers inventory to Philbin at a 25% gross profit rate. The following data are available pertaining specifically to Philbins intra-entity purchases from Anderson. Anderson was acquired on January 1, 2020.

	2020			2021			2022
Purchases by Philbin	$	8,000		$	12,000		$	15,000
Ending inventory on Philbins books		1,200			4,000			3,000

Assume the equity method is used. The following data are available pertaining to Andersons income and dividends.

	2020			2021			2022
Andersons net income	$	70,000		$	85,000		$	94,000
Dividends paid by Anderson		10,000			10,000			15,000

For consolidation purposes, what amount would be debited to January 1 retained earnings for the 2021 consolidation worksheet entry with regard to the unrecognized intra-entity gross profit remaining in ending inventory with respect to the 2020 intra-entity transfer of merchandise?