P Company purchased 90% of the outstanding common stock of S Company on January 1,2010 .S Company's stockholders' equity at various dates was:

1/1/101/1/1412/31/14

Common stock$400,000$400,000$400,000

Retained earnings120,000380,000460,000

Total$520,000$780,000$860,000

The workpaper entry to establish reciprocity under the cost method in the preparation of a consolidated statements workpaper on December 31, 2014 should include a credit to P Company's retained earnings of

a.$80,000.b.$234,000.c.$260,000.d.$306,000.