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This question is based on the information in the previous question. Recall that Big Company purchased 100% of Small Company's common stock for $900,000 on
This question is based on the information in the previous question. Recall that Big Company purchased 100% of Small Company's common stock for $900,000 on 1/11 and elected the equity method. At the time, Small's equity included $400,000 of capital stock and $300,000 of retained earnings Bia reported a $400.000 Retained Earnings balance on 1/1/X1. An appraisal of Small's assets identified the folsowing items: Agcutionauntormavon: Assume that Small reported a $100,000 income and paid $10,000 of cash dividends to shareholders on 12/31/X1. Big reported $200,000 of income from its own operations. Assume that the balance sheets of Big and Small are consolidated on 12/31/X1. How much consolidated retained earnings will be reported on 12/31/1
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