Problem
Parent's Co, purchased 100% 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. What is the consolidated retained earning balance on December 31, 20X1?