Cable Corporation purchased 70 percent of the ownership of Brush Company on January 1, 20X5, and paid \(\$ 220,000\). At that date. Brush Company reported the book value of its net assets as

\(\$ 280,000\) and a remaining useful life of 10 years for those assets to which the purchase differential is assigned. The companies reported the following data for 20X9:

Cable Corporation uses the cost method in accounting for its investment in Brush. The following entry was included in the eliminating entries used to prepare the consolidated financial statements at December \(31,20 \times 9\) :

\section*{Required}

a. What amount of retained earnings did Brush report at January 1, 20X5?

b. What amount should be reported as consolidated retained earnings at January 1, 20X9?

c. What amount should be reported as consolidated net income for \(20 \mathrm{X} 9\) ?

d. What amount should be reported as consolidated retained earnings at December 31, 20X9?

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Cable Corporation Brush Company Retained Earnings January 1, 20X9 20X9 Net Income $520,000 230.000 $120,000 25.000 20X9 Dividends $50,000 10,000