37. Determining ending consolidated balances in the second year following the acquisition-Equity Lo method Assume a parent company acquired a subsidiary on January 1, 2015The purchase price was $745 000 in excess of the subsidiary's book value of Stockholders' Equity on the acquisition date, and that excess was assigned to the following LA] assets: Original Amount $360,000 385,000 $745,000 Original Useful Life A] Asset Property, plant and equipment (PPE), net Goodwill . . . 15 years Indefinite The AAP asset relating to undervalued PPE with a 15-year useful life has been depreciated as part of the parent's equity method accounting. The financial statements of the parent and its subsidiary for the year ended December 31, 2016, are as follows: Parent Subsidiary Parent Subsidiary Income statement: Balance sheet: Cost of goods sold. Gross proft. Equity income. Operating expenses . . .. 1,295,313 386,500 447,000 14,206,500827,000 (4,950,000) (900,000) Cash 186,000 2,667,500 ..(1,031,250) (390,000) Equity investment. 210,000 875 Net income.... ..$1,079,750 Statement of retained earnings: Net income $ Property, plant and equipment (PPE), net $21,804,813 $2,008,500 Liabilities and stockholders' equity 1,079,750 210,000 Accounts payable. (217,000) (31,500) Accrued liabilities $1,006,500 $ 143,000 1,196,250 187,000 8,750,000 500,000 Ending retained earnings Common stock APIC Retained earnings 640,563 . 4,709,000 5,502,500 953,500 $21,804,813 $2,008,500 At what amount will the following accounts appear on the consolidated financial statements? a. Sales ad b. Equity income f. Property, plant and equipment (PPE), net aaa -t 3eo O g. Goodwill 38sooo Common stock peren+ Operating expenses . ivable odc i. Retained earnings porent d. Accounts receivable 0 Equity investment e