100,000 shares were outstanding throughout the last five years. Sales for the year 20X1 were $50 million. Net Income for the year 20X1 was $10 million. Dividends declared during 20X1 were $2 million. Price per share on 1/1/X1 was $11 Price per share on 12/31/XI was $13 Subsidiary Co. issued bonds on 1/1/XI with Face Value of $1,000, for 5 years Annual payments of 8% nominal (coupon) rate. The market rate of interest on 1/1/XI was 6% and on 12/31/XI it was 15%. Additional Information: Parent Investor 1 owned during 20X1 10% of Subsidiary Co. shares, which it acquired two years earlier at the price of $6 per share. Parent Investor 2 owned during 20XI 30% of Subsidiary Co. shares, which it acquired three years earlier at the price of $5 per share. Parent Investor 3 purchased one bond of Subsidiary Co. on 1/1/XI, and the financial manager of Parent Investor 3 declared that his intention is to continue holding the bond for a few years only? Parent Investor 4 purchased one bond of Subsidiary Co. on 1/1/XI, and the financial manager of Parent Investor 4 declared that his intention is to continue holding the bond until its maturity at the end of the 5 years?

Required:

PROBLEM 8: What was the reported Net Income resulting from the Investment in Subsidiary Co. in the Parent Investor Lincome Statement for 20X1?

Problem9: At what value was the Investment in Subsidiary Co. reported in the Parent Investor 1 Balance Sheet on 12/31/X1?

PROBLEM 10: What was the reported Net Income resulting from the Investment in Subsidiary Co. in the Parent Investor 2 Income Statement for 20X1? PROBLEM 11: At what value was the Investment in Subsidiary Co. reported in the Parent Investor 2 Balance Sheet on 12/31/X12 PROBLEM 12: At what value was the Investment in Subsidiary Co. reported in the Parent Investor 3 Balance Sheet on 12/31/X1?