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 the consolidated retained earnings balance on December 31, 20X1?
A. $470,000
B. $600,000
C. $585,000
D. $759,000
Answer: B
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