Herbert, Inc., acquired all of Rambis Companys outstanding stock on January 1, 2017, for $609,000 in cash. Annual excess amortization of $17,600 results from this transaction. On the date of the takeover, Herbert reported retained earnings of $427,000, and Rambis reported a $239,000 balance. Herbert reported internal net income of $48,000 in 2017 and $59,500 in 2018 and declared $10,000 in dividends each year. Rambis reported net income of $28,000 in 2017 and $39,500 in 2018 and declared $5,000 in dividends each year.

A.

consolidated retained earnings (equity method)
consolidated retained earnings (initial value method
consolidated retained earnings (partial equity method)