Intercompany Inventory Transactions Assume that a parent company owns a 100% controlling interest in its long-held subsidiary. The following excerpts are from the parent's and subsidiary's pre-consolidation financial statements and the consolidated financial statements for the year ending December 31, 2019: $277,500 Parent Subsidiary Consolidated Income Statement Revenues $4,200,000 $2,850,000 $6,150,000 Cost of goods sold (2.730,000) (1,710,000) (3,550,500) Gross profit 1,470,000 1,140,000 2,599,500 Income from subsidiary 222,000 Selling, general & administrative expenses (1,200,000) (907,500) (2,107,500) Net income $492,000 $232,500 $492,000 Statement of retained earnings Retained earnings, January 1 $300,000 $300,000 Net income 492,000 232,500 492,000 Dividends declared (90,000) (67,500) (90,000) Retained earnings, December 31 $702,000 $442,500 $702,000 Balance Sheet Cash $90,000 $60,000 $150,000 Accounts receivable 180,000 112,500 244,500 Inventories 195,000 135,000 298,500 Investment in Subsidiary 973,500 Property, plant & equipment 1,275,000 930,000 2,205,000 Goodwill 0 75,000 Total assets $2,713,500 $1,237,500 $2.973,000 Accounts payable $120,000 $82,500 $154,500 All other liabilities 450,000 225,000 675,000 Common stock & APIC 1,441,500 487,500 1,441,500 Retained earnings 702,000 442,000 702,000 Total liabilities and equity $2,713,500 $1,237,500 $2,973,000 The parent sold inventories to the subsidiary during both 2018 and 2019. For these sales to the subsidiary, the parent earns a gross profit of 35%. What is the amount of parent-company profit from intercompany inventory transactions that was in the subsidiary's ending inventory on December 31, 2019