Phips Co. purchases 100 percent of Sips Company on January 1, 20X2, when Phips' retained earnings balance is $320,000 and Sips' is $120,000. During 20X2, Sips reports $20,000 of net income and declares $8,000 of dividends. Phips reports $125,000 of separate operating earnings plus $20,000 of equity-method income from its 100 percent interest in Sips; Phips declares dividends of $35,000.

(1)

Based on the preceding information, what is Phips' post-closing retained earnings balance on December 31, 20X2?

	$305,000
	$410,000
	$430,000
	$465,000

(1)

Based on the preceding information, what is the consolidated retained earnings balance on December 31, 20X2?

	$402,000
	$410,000
	$430,000
	$562,000