Question 3 (1 point) Saved On January 1, X1, Parent Company established a new entity, Subsidiary Corporation. Subsidiary issued common shares to Parent in return for $50,000 cash paid by Parent. Summarized statements of financial position of the companies on December 31, X3, are presented below. Parent Subsidiary $25,000 Assets Cash Investment Other assets Total assets $25,000 50,000 350,000 $425,000 125,000 $150,000 Liabilities and equity Current liabilities $125,000 $35,000 Share capital Retained earnings Total liabilities and equity 200,000 100,000 $425,000 50,000 65,000 $150,000 During X3, Parent purchased inventory for $30,000 and sold the full amount to Subsidiary for $50,000. Prior to the end of the year, all the transferred units have been resold by Subsidiary to external parties for $75,000. What amount would Parent Company report on its consolidated F/S on December 31, X3, for Retained Earnings