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Lowell, Inc., obtained 100 percent of River Hawk Company's common stock on January 1, 2020, by issuing 8,800 shares of $10 par value common stock. Lowell's shares had a $15 per share fair value. On that date, River Hawk reported a net book value of $86,450. However, its equipment (with a five-year remaining life) was undervalued by $7,350 in the company's accounting records. Also, River Hawk had developed a customer list with an assessed value of $38,200, although no value had been recorded on River Hawk's books. The customer list had an estimated remaining useful life of 10 years. The following balances come from the individual accounting records of these two companies as of December 31, 2020: Lowell River Hawk Revenues $ (712,000) $ (420,000) Expenses 522,000 217,000 Investment income Not given 0 Dividends declared 100,000 100,000 The following balances come from the individual accounting records of these two companies as of December 31, 2021: Lowell River Hawk Revenues $ (892,000) $ (478,500) Expenses 550,800 251,300 Investment income Not given 0 Dividends declared 120,000 80,000 Equipment 548,000 357,000 2. 1. a. What balance does Lowell's Investment in River Hawk account show on December 31, 2021, when the equity method is applied? What is the consolidated net income for the year ending December 31, 2021? 3. c.1. What is the consolidated equipment balance as of December 31, 2021? 4. c-2 Would this answer be affected by the investment method applied by the parent? 5. d. Prepare entry *C for the beginning of the Retained Earnings account on a December 31, 2021 by using initial value method. Complete this question by entering your answers in the tabs below. Req A to C2 Reg D a. What balance does Lowell's Investment in River Hawk account show on December 31, 2021, when the equity method is applied? b. What is the consolidated net income for the year ending December 31, 2021? c-1. What is the consolidated equipment balance as of December 31, 2021? c-2. Would this answer be affected by the investment method applied by the parent? Show less a. Investment in River Hawk account b. Consolidated net income c-1. Consolidated equipment C-2. Would this answer be affected by the investment method applied by the parent? Complete this question by entering your answers in the tabs below. Reg A to cz ReqD Prepare entry *C for the beginning of the Retained Earnings account on a December 31, 2021 by using initial value method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries