The financial statements of Post Company and Stamp Company on December 31, Year 5, were as follows: BALANCE SHEETS Assets Post Stamp Cash $ Accounts receivable 50,000 $ 250,000 10,000 100,000 Inventories 3,000,000 520,000 Equipment (net). 6,150,000 2,500,000 Buildings (net) 2,600,000 500,000 Investment in Stamp (at cost) 850,000 $12,900,000 $3,630,000 Liabilities and Shareholders' Equity Current liabilities $ Long-term liabilities. 300,000 $ 170,000 4,000,000 1,100,000 Common shares 3,000,000 500,000 Retained earnings 5,600,000 1,860,000 $12,900,000 $3,630,000 STATEMENTS OF INCOME AND RETAINED EARNINGS Sales revenue Post $3,500,000 Stamp $ 900,000 Other revenues 300,000 30,000 3,800,000 930,000 Cost of goods sold 1,700,000 330,000 Selling and administrative expenses 300,000 100,000 Other expenses Income tax expense Net income Retained earnings, beginning balance Dividends declared Retained earnings, ending balance 5,800,000 18,800,000 200,000 $5,600,000 20,000 $ 1,860,000 200,000 150,000 300,000 70,000 $2,500,000 $ 650,000 1,300,000 280,000 $4,500,000 $ 1,600,000 Additional Information Post owns 70 percent of Stamp and carries its investment in Stamp on its books by the cost method. During Year 4, Post sold Stamp $100,000 worth of merchandise, of which $60,000 was resold by Stamp in the year. During Year 5, Post had sales of $200,000 to Stamp, of which 40 percent was resold by Stamp. Intercompany sales are priced to provide Post with a gross profit of 30 percent of the sales price. On December 31, Year 4, Post had in its inventories $150,000 of merchandise purchased from Stamp during Year 4. On December 31, Year 5, Post had in its ending inventories $100,000 of merchandise that had resulted from purchases of $350,000 from Stamp during Year 5. Intercompany sales are priced to provide Stamp with a gross profit of 60 percent of the sale price. Both companies are taxed at 25 percent. To calculate Post's consolidated cost of goods sold, the first step is to add together the unadjusted totals from Post's and Stamp's separate-entity financial statements. What is the adjustment to this figure for unrealized profits in beginning inventory for the year ended December 31, Year 5?