H Ltd acquired 75 per cent of the share capital of S for £280,000 on 1 January 20X3. Goodwill arising on consolidation has been fully impaired. Details of the share capital and retained earnings of S are as follows:

At 31 December 20X9 the retained earnings of H amounted to £480,000. What figure should appear in the consolidated statement of financial position of H and S for the retained earnings at 31 December 20X9?
a. £530,000
b. £525,000
c. £485,000
d. £575,000

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Share capital Retained earnings At 1 January 20X3 £ 200,000 120,000 At 31 December 20X9 £ 200,000 180,000