Great Company acquired 80 percent of Meager Corporation's common stock on January 1, 20X4, for $280,000. The fair value of the noncontrolling interest was $70,000 at the date of acquisition.
Great's corporate controller has lost the consolidation files for the past three years and has asked you to compute the proper retained earnings balances for the consolidated entity at January 1, 20X8, and December 31, 20X8. The controller has been able to determine the following:
1. The book value of Meager's net assets at January 1, 20X4, was $290,000, and the fair value of its net assets was $325,000. This difference was due to an increase in the value of equipment.
All depreciable assets had a remaining life of 10 years at the date of combination. At December 31, 20X8, Great's management reviewed the amount attributed to goodwill as a result of its purchase of Meager common stock and concluded that an impairment loss of $17,500 should be recognized in 20X8 and shared proportionately between the controlling and noncontrolling shareholders.
2. Great uses the modified equity method in accounting for its investment in Meager.
3. Meager has reported net income of $30,000 and paid dividends of $20,000 each year since Great purchased its ownership.
4. Great reported retained earnings of $450,000 in its December 31, 20X7, balance sheet. For 20X8, Great reported operating income of $65,000 and paid dividends of $45,000.
5. Meager sold land costing $40,000 to Great for $56,000 on December 31, 20X7.
6. On January 1, 20X6, Great sold depreciable assets with a remaining useful life of 10 years to Meager and recorded a $22,000 gain on the sale.

Required
Compute the appropriate amounts to be reported as consolidated retained earnings at January 1, 20X8, and December 31, 20X8.