Swan Corporation acquired 90 percent of the stock of United Mining Company in a business combination recorded as a pooling of interests on January 1, 20X0. United Mining Company reports the following balances on January 1, 20X2:

Swan Corporation uses the basic equity method in accounting for its investment in United Mining and reports a balance of \(\$ 360,000\) as its investment on January 1, 20X2.
\section*{Required}

a. Give the workpaper elimination entry or entries needed to prepare a consolidated balance sheet as of January 1, 20 X2.

b. If the parent company had \(\$ 400,000\) of accumulated retained earnings on January 1, 20X2, compute the total balance of retained earnings to be reported in the consolidated balance sheet as of January 1, 20X2.

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Cash $ 60,000 Accounts Payable Accounts Receivable 90,000 Inventory 140,000 Buildings and Equipment 600,000 Less: Accumulated Depreciation (250,000) Bonds Payable Common Stock Additional Paid-In Capital Retained Earnings $ 40.000 200,000 100.000 50.000 250.000 Total Assets $640,000 Total Liabilities and Equities $640,000