Pepper purchases 90 percent (for underlying BV) of Salt on January 1, 20X1, when Pepper's retained earnings balance is $725,000 and Salt's is $200,000. During 20X1, Salt reports $30,000 of net income and declares $10,000 of dividends. Pepper reports $525,000 of operating income and included its share of equity-method income from its 90 percent interest in Salt in its net income; Pepper declares dividends of $80,000. During the year, Salt sold inventory to Pepper (upstream) and at the end of the year there was an unrealized gain of $50K on that inventory sale. What is total Consolidated Income for 20X1?

Group of answer choices

$555,000

$605,000

$505,000

$507,000