On Jenusry 1, Year 4, Gront Corporstion bought 1,000 (80\%) of the outstanding common sheres of Devy Company for $8,750 cash. Devy's shores were trading for $7 per share on the date of acquisition. On that date, Devy had $3,125 of common shares outstanding and $3,750 retsined esrnings. Also on that date, the carrying amount of esch of Devy's identifiable sssets and lisbilities wos equal to its fair value except for the following: The potent had on estimated useful life of five years at Jonuary 1, Year 4, and the entire inventory wos sold during Year 4 . Grant uses the cost method to occount for its investment. The following are the seporate-entity finuncial statements of Grant and Devy as ot December 31, Yeor 7 : Additional Information The recoversble smount for goodwill wss determined to be $1,250 on December 31, Year 7. The goodwill impsirment loss occurred in Year 7 . Gront's sccounts receivable contains $3,750 owing from Devy. Amortization expense is grouped with distribution expenses and impsirment losses sre grouped with other expenses. Required: (a) Colculate consolidated retained eornings ot December 31, Year 7 . (Input all values as positive numbers. Omlt \$ and \% sign In your response.)