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

question 20

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 Son's post-closing retained earnings balance on December 31,20X1?

• A)$141,000
• B)$150,000
• C)$159,000
• D)$165,000

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Definitions:

Triangulation

The use of multiple methods or data sources in research to improve the accuracy and validity of results by cross-verifying findings.

Ethnography

A qualitative research method focused on studying cultures, practices, and communities through observation and participation.

Sociometry

A quantitative method for measuring social relationships, used to identify the structure of groups and the position of individuals within them.