Planet Inc. (Planet) purchased 100% of the outstanding voting shares of Sol Company (Sol) for $420,000 on January 1, 2022. On that date, Sol had common shares and retained earnings worth $100,000 and $233,000, respectively. On acquisition date, the plant assets and patent had a remaining useful life of 8 years and 10 years, respectively. Both the plant assets and patent are amortized on a straight-line basis. The bonds payable mature on December 31, 2030, pay interest annually, and are amortized using the effective interest rate method. The market rate of interest for similar bonds is 8%. The balance sheets of both companies, as well as Sol's fair market values on the date of acquisition are disclosed below:

	Planet Inc.	Sol Company	Sol Company
	(carrying value)	(carrying value)	(fair value)
Cash	$150,000	$84,000	$84,000
Accounts receivable	85,000	65,000	65,000
Inventory	55,000	34,000	45,000
Plant assets (net)	850,000	220,000	240,000
Patent	------------	70,000	84,000
Total assets	$1,140,000	$473,000
Current liabilities	$220,000	$80,000	80,000
Bonds payable, 10%	400,000	60,000	67,496
Common shares	200,000	100,000
Retained earnings	320,000	233,000
Total liabilities and equity	$1,140,000	$473,000

Other information: The net incomes for Planet and Sol for the year ended December 31, 2022, were $180,000 and $120,000, respectively. Sol declared and paid $12,000 in dividends to Planet during the year. There were no other intercompany transactions during 2022. A goodwill impairment test conducted on December 31, 2022, revealed that the goodwill associated with Planet's acquisition of Sol had a recoverable amount of $40,000. Both companies use a FIFO inventory system, and all of Sol 's inventory on the date of acquisition was sold during the year. Planet did not declare any dividends during the 2022.

Assuming Planet uses the equity method to account for its investment in Sol and had net income of $160,000 from its own operations (before making any entries to reflect its investment in Sol), what amount of consolidated retained earnings would appear on Planet's consolidated balance sheet as at December 31, 2022?

Multiple Choice

$564,204

$600,000

$576,204

$480,000