CORRECT ANSWER IS GIVEN, PLEASE EXPLAIN STEPS

On January 1, 20X4, Plimsol Company acquired 100 percent of Shipping Corporation's voting shares, at underlying book value. Plimsol uses the cost method in accounting for its investment in Shipping. Shipping's retained earnings was $75,000 on the date of acquisition. On December 31, 20X4, the trial balance data for the two companies are as follows:

		Plimsol Co.				Shipping Corp.
	Item	Debit		Credit		Debit		Credit
	Current Assets	$100,000				$ 75,000
	Depreciable Assets (net)	200,000				150,000
	Investment in Shipping Corp.	125,000
	Other Expenses	60,000				45,000
	Depreciation Expense	20,000				15,000
	Dividends Declared	25,000				15,000
	Current Liabilities			$ 40,000				$ 25,000
	Long-Term Debt			75,000				50,000
	Common Stock			100,000				50,000
	Retained Earnings			150,000				75,000
	Sales			150,000				100,000
	Dividend Income			15,000
		$530,000		$530,000		$300,000		$300,000

48. Based on the information provided, what amount of retained earnings will be reported in the consolidated balance sheet prepared on December 31, 20X4?

A. $235,000

B. $210,000

C. $310,000

D. $225,000

50. Based on the information provided, what amount of total stockholder's equity will be reported in the consolidated balance sheet prepared on December 31, 20X4?

A. $190,000

B. $335,000

C. $460,000

D. $310,000