Bath Corporation acquired 80 percent of Stang Brewing Companys stock on January 1, 20X1, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 20 percent of Stangs book value. On January 1, 20X1, Stang issued $318,000 par value, 8 percent, 10-year bonds to Sidney Malt Company. Bath subsequently purchased $118,000 of the bonds from Sidney Malt for $130,000 on January 1, 20X3. Interest is paid semiannually on January 1 and July 1. Assume Bath Corporation uses the fully adjusted equity method.

Summarized balance sheets for Bath and Stang as of December 31, 20X4, follow:

BATH CORPORATION
Balance Sheet
December 31, 20X4
Cash & Receivables	$	142,500		Accounts Payable	$	106,800
Inventory		217,000		Bonds Payable		398,000
Buildings & Equipment (net)		331,000		Common Stock		188,000
Investment in Stang Brewing:				Retained Earnings		305,600
Bonds		119,500
Stock		188,400
Total Assets	$	998,400		Total Liabilities & Owners Equity	$	998,400

STANG BREWING COMPANY
Balance Sheet
December 31, 20X4
Cash & Receivables	$	144,000		Accounts Payable	$	82,000
Inventory		167,000		Bonds Payable		318,000
Buildings & Equipment (net)		371,000		Bond Premium		36,000
				Common Stock		88,000
				Retained Earnings		158,000
Total Assets	$	682,000		Total Liabilities & Owners Equity	$	682,000

At December 31, 20X4, Stang holds $42,000 of inventory purchased from Bath, and Bath holds $26,000 of inventory purchased from Stang. Stang and Bath sell at cost plus markups of 30 percent and 40 percent, respectively. Assume total sales from Bath to Stang were $203,000 and from Stang to Bath were $143,000.

Required:
a.	Prepare all consolidation entries needed on December 31, 20X4, to complete a consolidated balance sheet worksheet. Assume Stang earned $82,000 and paid $16,000 in dividends during the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) how do you calculate the retained earnings