Pruitt Corporation owns 90% of the common stock of Sedbrook Company. The stock was purchased for $542,070 on January 1,2012 , when Sedbrook Company's retained earnings were $100,600. Preclosing trial balances for the two companies at December 31,2016 , are nrecented here. The January 1, 2016, inventory of Sedbrook Company includes $30,200 of profit recorded by Pruitt Corporation on 2015 sales. During 2016, Pruitt Corporation made intercompany sales of $200,600 with a markup of 25% on cost. The ending inventory of Sedbrook Company includes goods purchased in 2016 from Pruitt for $50,200. Pruitt Corporation uses the complete equity method to record its investment in Sedbrook Company. Calculate consolidated retained earnings on December 31,2016 , using the analytical or t-account approach