Parent Co. purchases 80 percent of Son Company on January 1, 20X1, when Parents retained...
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Accounting
Parent Co. purchases 80 percent of Son Company on January 1, 20X1, when Parents retained earnings balance is $550,000 and Sons is $200,000. During 20X1, Son reports $20,000 of net income and declares $6,000 of dividends. Parent reports $125,000 of separate operating earnings plus $16,000 of equity-method income from its 80 percent interest in Son; Parent declares dividends of $40,000. Based on the preceding information, what is Consolidated retained earnings balance on December 31, 20X1?
Group of answer choices
$635,000
$550,000
$544,000
$651,000
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