Drift plc acquired 75% of equity shares in Kai plc, on 1 January 20X6, when Kai's retained earnings were $124,000. The following is an extract from the Statement of Income for both companies for the year ended 31 December 20X8:

Income statements	Drift	Kai
For the year ended 31.12.20X8	$'000	$'000
Sales Revenue	7,200	1,600
Cost of Sales	(5,450)	(942)
Gross profit	1,750	658

During the year ended 31 December 20X8, Drift plc sold goods invoiced at $400,000 to Kai at cost plus a third. $80,000 of these goods remain with Kai at the year end.

a) Calculate the consolidated gross profit