QUESTION 10 Phips Co. purchases 100 percent of Sips Company on January 1, 20X2, when Phips retained earnings balance is $300,000 and Sips' RE balance is $120,000. During 20X2, Sips reports $20.000 of net income and declaros $8,000 of dividende. 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, What is the consolidated retained earnings balance on December 31, 20X2 in the consolidated retained earnings staternent? $430,000 $410,000 $402,000 $562,000 QUESTION 11