1 Foxx Corporation acquired all of Greenburg Company's outstanding stock on January 1, 2016, for $647,000 cash. Greenburg's accounting records showed net assets on that date of $480,000, although equipment with a 10-year life was undervalued on the records by $88,000. Any recognized goodwill is considered to have an indefinite life. Greenburg reports net income in 2016 of $113,500 and $103,000 in 2017. The subsidiary declared dividends of $20,000 in each of these two years. 10 points Skipped Account balances for the year ending December 31, 2018, follow. Credit balances are indicated by parentheses. eBook Print References Revenues Cost of goods sold Depreciation expense Investment income Net income Retained earnings, 1/1/18 Net income Dividends declared Retained earnings, 12/31/18 Current assets Investment in subsidiary Equipment (net) Buildings (net) Land Total assets Liabilities Common stock Retained earnings Total liabilities and equity Foxx $(1,160,000) 145,000 348,000 (20,000) (687,000) $(1,296,000) (687,000) 120,000 $(1,863,000) $ 317,000 647,000 922,000 958,000 732,000 $ 3,576,000 $ (813,000) (900,000) (1,863,000) $ (3,576,000) Greenburg $ (680,000) 170,000 429,000 0 $ (81,000) $ (356,500) (81,000) 20,000 $ (417,500) s 197,000 0 716,000 538,000 147,000 $ 1,598,000 $ (880,500) (300,000) (417,500) $(1,598,000) a. Determine the December 31, 2018, consolidated balance for each of the following accounts: Depreciation Expense Dividends Declared Revenues Equipment Buildings Goodwill Common Stock b. How does the parent's choice of an accounting method for its investment affect the balances computed in requirement (a)? c. Which method of accounting for this subsidiary is the parent actually using for internal reporting purposes? d. Determine parent's investment income for 2018 under partial equity method and equity method. e. What would be Foxx's balance for retained earnings as of January 1, 2018, if each of the following methods had been in use? Initial value method. Partial equity method. Equity method. Complete this question by entering your answers in the tabs below. Req A Req B and C Req D and E Determine the December 31, 2018, consolidated balance for each of the following accounts: Consolidated Balances Depreciation expense Dividends declared Revenues Equipment Buildings Goodwill Common stock Complete this question by entering your answers in the tabs below. Req A Req B and C Req D and E b. How does the parent's choice of an accounting method for its investment affect the balances computed in requirement (a)? c. Which method of accounting for this subsidiary is the parent actually using for internal reporting purposes? b. Yes, affects consolidated totals ONo, doesn't affect consolidated totals but only internal reporting of parent O No, neither affects consolidated totals nor internal reporting of parent C. O Initial value method O Partial equity method OEquity method Complete this question by entering your answers in the tabs below. Req A Req B and C Req D and E d. Determine parent's investment income for 2018 under partial equity method and equity method. e. What would be Foxx's balance for retained earnings as of January 1, 2018, if each of the following methods had been in use? d. Investment Income e. Retained Earnings Initial value method Partial equity method Equity method