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

Multiple Choice

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