Assume an investor acquired 100% of the voting common stock of an investee on January 1, 2012 in a transaction that qualifies as a business combination. As a result of the acquisition, the investor recognized no goodwill and no bargain purchase gain in the post-acquisition consolidated financial statements (i.e., all of the resulting Acquisition Accounting Premium relates to identifiable net assets). The investor uses the equity method to account for its pre-consolidation investment in the investee. In addition, there are no intercompany transactions between the investor and investee. The following summarized pre-consolidation financial statement information is for the year ending December 31, 2019:

Understanding consolidated balances

What amount of retained earnings will appear in the consolidated balance sheet at December 31, 2019?

$1,348,800

$1,384,800

$1,233,600

$1,243,200

Income Statement Investor Investee $2,232,000 $307,200 Revenues Income from Investee 141,600 Expenses (1,800,000) (156,000) Consolidated net income 151,200 573,600 NCI $573,600 $151,200 Net income Statement of Retained Earnings Retained earnings, January 1 $720,000 $36,000 151,200 Net income 573,600 Dividends declared (60,000) (36,000) $1,233,600 $151,200 Retained earnings, December 31 Balance Sheet $283,200 $0 Investment in Investee All other assets 4,598,400 384,000 $4,881,600 $384,000 Total assets Liabilities $2,880,000 $148,000 Common stock and additional paid-in capital 768,000 84,000 Retained earnings 1,233,600 151,200 Total liabilities and equity $4,881,600 $384,000