When the 2018 year began, senatobia furniture’s shareholders’ equity included the following: - ($ in millions) 6 million shares of $1 par common stock $ 6 paid-in capital – excess of par 114 1 million shares of $100 par, 9% cumulative, non-participating preferred stock 100 retained earnings $ 140 the company earned $48 million during 2018. at the end of the year, the board of directors declared and paid the contracted amount of preferred dividends as well as $3 per share to common shareholders. no dividends had been declared or paid during 2017. on january 5, the company distributed a 3 for 2 common stock split effected in the form of a stock dividend. what is the balance in retained earnings to be reported on the 2018 balance sheet?

Grant, inc., acquired 30% of south co.’s voting stock for $200,000 on january 2, year 1, and did not elect the fair value option. the price equaled the carrying amount and the fair value of the interest purchased in south’s net assets. grant’s 30% interest in south gave grant the ability to exercise significant influence over south’s operating and financial policies. during year 1, south earned $80,000 and paid dividends of $50,000. south reported earnings of $100,000 for the 6 months ended june 30, year 2, and $200,000 for the year ended december 31, year 2. on july 1, year 2, grant sold half of its stock in south for $150,000 cash. south paid dividends of $60,000 on october 1, year 2. before income taxes, what amount should grant include in its year 1 income statement as a result of the investment?