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On March 1, 2020 Ajax Corporation acquired all the assets and liabilities of Chelsea Corporation by issuing shares of its common stock. The following is

On March 1, 2020 Ajax Corporation acquired all the assets and liabilities of Chelsea Corporation by issuing shares of its common stock. The following is a balance sheet data for the companies prior to the business combination and immediately following the combination: Ajax Corporation Chelsea Corporation Combined Cash $ 75,000 $ 35,000 $ 110,000 Accounts receivable 92,000 30,000 122,000 Inventory 45,000 43,000 98,000 Equipment (net) 420,000 150,000 620,000 Goodwill XXX Total Assets $ 632,000 $ 258,000 XXX Accounts payable $ 375,000 $ 125,000 $ 500,000 Common stock, $2 par 120,000 40,000 200,000 Additional paid-in capital 85,000 30,000 245,000 Retained earnings 52,000 63,000 XXX Total Liabilities & Equity $ 632,000 $ 258,000 XXX What balance in Retained earnings will the combined entity report immediately following the combination?

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