Parent Co.purchases 100 percent of Son Company on January 1,20X1,when Parent's retained earnings balance is $520,000 and Son's is $150,000.During 20X1,Son reports $15,000 of net income and declares $6,000 of dividends.Parent reports $105,000 of separate operating earnings plus $15,000 of equity-method income from its 100 percent interest in Son;Parent declares dividends of $40,000.
-Based on the preceding information,what is Parent's post-closing retained earnings balance on December 31,20X1?
A)$485,000
B)$505,000
C)$525,000
D)$600,000

Question

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The Answer of Parent Co.purchases 100 percent of Son Company on January 1,20X1,when Parent's retained earnings balance is $520,000 and Son's is $150,000.During 20X1,Son reports $15,000 of net income and declares $6,000 of dividends.Parent reports $105,000 of separate operating earnings plus $15,000 of equity-method income from its 100 percent interest in Son;Parent declares dividends of $40,000.
-Based on the preceding information,what is Parent's post-closing retained earnings balance on December 31,20X1?
A)$485,000
B)$505,000
C)$525,000
D)$600,000

Parent CoPurchases 100 Percent of Son Company on January 1,20X1,when Parent's