Peacoat Corporation Acquired 80 Percent of Sweater Corporation's Common Stock

Multiple Choice

Peacoat Corporation acquired 80 percent of Sweater Corporation's common stock on March 31,20X4 for $360,000.At that date,the fair value of the noncontrolling interest was $90,000.On January 1,20X4,Sweater reported the following stockholders' equity balances:
Sweater reported net income of $100,000 in 20X4,earned uniformly throughout the year,and declared and paid dividends of $40,000 on December 31,20X4.Peacoat reported retained earnings of $500,000 on January 1,20X8,and had 20X4 income of $200,000 from its separate operations.Peacoat paid dividends of $50,000 on December 31,20X4.Peacoat accounts for its investment in Sweater Corporation using the fully adjusted equity method.
-Based on the information provided,what is the amount of consolidated retained earnings as of December 31,20X4?

A) $500,000
B) $710,000
C) $725,000
D) $760,000