Plant, Inc., acquires Seed Corporation on January 1, 2017, in exchange for $510,000 cash.Seed's equipment (with a five-year remaining life) is undervalued by 50,000. The fair values of all other assets and liabilities approximate book value. On the date of the acquisition,Planthad common stock of $350,000 and retained earnings of $860,000 andSeedhad common stock of $150,000 and retained earnings of $300,000.

In 2017,Seedearns a net income of $55,000 and declaresand pays a $5,000 cash dividend. In 2017,Plantreports netincome from its own operations (exclusive of any income fromSeed) of $125,000 and declares no dividends.

Required:How muchadjustment toPlant's January 1, 2018, Retained Earnings account balance is required ifPlantaccounts for its investment inSeedusing thePartial Equitymethod?