What is amount of consolidated retained earnings for H Co on 12/31/12 given:
H Co acquires R Co for $574,000 on 1/1/11. Annual excess amortization as a result is $12,000. On this date H Co has retained earnings of $400,000, and R Co has $200,000.
H Co has internal income of 40,000 in 2011 and 50,000 in 2012 and paid 10,000 each year in dividends. R Co has net income of 20,000 in 2011 and 30,000 in 2012, and paid $5,000 in dividends each year.