1 1 Herbert, Inc., acquired all of Rambis Company's outstanding stock on January 1, 2017, for $632,000 in cash. Annual excess amortization of $20,100 results from this transaction. On the date of the takeover, Herbert reported retained earnings of $458,000, and Rambis reported a $254,000 balance. Herbert reported internal net income of $64,500 in 2017 and $79,200 in 2018 and declared $10,000 in dividends each year. Rambis reported net income of $29,300 in 2017 and $44,000 in 2018 and declared $5,000 in dividends each year. 10 points Skipped a. Assume that Herbert's internal net income figures above do not include any income from the subsidiary. eBook Print References If the parent uses the equity method, what is the amount reported as consolidated retained earnings on December 31, 2018? What would be the amount of consolidated retained earnings on December 31, 2018, if the parent had applied either the initial value or partial equity method for internal accounting purposes? b. Under each of the following situations, what is the Investment in Rambis account balance on Herbert's books on January 1, 2018? The parent uses the equity method. The parent uses the partial equity method. The parent uses the initial value method. c. Under each of the following situations, what is Entry "C on a 2018 consolidation worksheet? The parent uses the equity method. The parent uses the partial equity method. The parent uses the initial value method. Complete this question by entering your answers in the tabs below. 1 Complete this question by entering your answers in the tabs below. 10 points Required A Required B Required C Skipped Assume that Herbert's internal net income figures above do not include any income from the subsidiary. If the parent uses the equity method, what is the amount reported as consolidated retained earnings on December 31, 2018? What would be the amount of consolidated retained earnings on December 31, 2018, if the parent had applied either the initial value or partial equity method for internal accounting purposes? eBook Show less Print References Consolidated retained earnings (equity method) Consolidated retained earnings (initial value method) Consolidated retained earnings (partial equity method) Required A Required B > Complete this question by entering your answers in the tabs below. 10 points Required A Required B Required C Skipped Under each of the following situations, what is the Investment in Rambis account balance on Herbert's books on January 1, 2018? The parent uses the equity method. The parent uses the partial equity method. The parent uses the initial value method. eBook Print Show less A References Investment Equity method Partial equity method Initial value method Prepare entry *C if the parent used the equity method. Note: Enter debits before credits. Date Accounts Debit Credit January 01, 2018 1 Required A Required B Required C 10 points Under each of the following situations, what is Entry *C on a 2018 consolidation worksheet? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) The parent uses the equity method. The parent uses the partial equity method. The parent uses the initial value method. Skipped Show less A view transaction list eBook Print References Consolidation Worksheet Entries Prepare entry *C if the parent used the partial equity method. Note: Enter debits before credits. Date Accounts Debit Credit January 01, 2018 1 Required A Required B Required C 10 points Under each of the following situations, what is Entry *C on a 2018 consolidation worksheet? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) The parent uses the equity method. The parent uses the partial equity method. The parent uses the initial value method. Skipped Show less view transaction list eBook Print References Consolidation Worksheet Entries