On 1/1/2018,PCo acquired 75% of KCo stock at an amount equal to its book value Selected balance sheet data at 31/12/2018, are as follows:

P K

Total Assets 420,000 180,000

Liabilities 120,000 60,000

Common Stock 100,000 50,000

Retained Earnings 200,000 70,000

In consolidated balance sheet at 31/12/2018,what amount should P CO report as Retained Earnings ?

Select one:

a. 157,500

b. 270,000

c. 200,000

d. 175,000