Compute the December 31, 2020 consolidated retained earnings.
A) $1,645,375.
B) $1,350,000.
C) $1,565,375.
D) $1,840,375.
E) $1,265,375.

Question

Quizplus · Accepted Answer

The consolidated retained earnings on December 31, 2020, would be the parent company's retained earnings plus the parent's share of the subsidiary's post-acquisition retained earnings. The correct calculation leads to $1,645,375.

Compute the December 31, 2020 Consolidated Retained Earnings