On January 1, 2019, Lawrence, Inc. acquired the outstanding voting common stock of Colbert Corp. for $510,000.Of this payment, $60,000 was allocated to undervalued equipment (with a five-year life).Any remaining excess was attributable to goodwill.

During 2019, Lawrence bought inventory for $85,000 and sold it to Colbert for $108,500.40% of these goods were still in the company's possession on December 31.The financial statements of the two companies as of December 31, 2019 are presented below.

Lawrence

Colbert

Sales revenue

$650,000

$225,000

Cost of goods sold

(335,000

)

(80,000

)

Gross profit

315,000

145,000

Operating expenses

(45,000

)

(10,500

)

Income (loss) from subsidiary

113,100

_______

Net Income

$383,100

$134,500

Retained Earnings, 1/1/19

$670,000

$165,200

Net income

383,100

134,500

Dividends

-0-

-0-

Retained Earnings, 12/31/19

$1,053,100

$299,700

Cash and receivables

$259,900

$87,850

Inventory

480,100

105,350

Equity investment

623,100

Property, plant & equipment (Net)

905,000

357,500

Total Assets

$2,268,100

$550,700

Accounts payable

$485,000

$82,500

Accrued liabilities

320,000

53,000

Common stock

90,000

25,500

Additional paid-in capital

320,000

90,000

Retained Earnings

1,053,100

299,700

Total Liabilities and Equities

$2,268,100

$550,700

What is consolidated inventory on the December 31, 2019 balance sheet?

Group of answer choices

$470,050

$576,050

None of the answer choices is correct.

$585,450