8 Partly Mark 2:22 out of 2.50 Flag question Determining ending consolidated balances in the second year following the acquisition-Equity method Assume a parent company acquired a subsidiary on January 1, 2018. The purchase price was $760,000 in excess of the subsidiary's book value of Stockholders' Equity on the acquisition date, and that excess was assigned to the following (A) assets: Original Original Useful Life Amount (years) [A] Asset Property plant and eqpment (PPE) $360.000 Goodwill 12 400.000 $260.000 Indefinite The AAP asset relating to undervalued PPE with a 12-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, 2019, are as follows: Income statement Seles C Grass profe Opening Net name Parent Subsidiary Balance sheet 40000 1500,200 Am Parent Subsidiary 500,000 1900.000) C 737,000 38000 son 000 as ble ,000,000 548,000 170000 1,400.000 44LOO 0.000.00 4000 fmy 1873000 $1.670.000 $200,000 Property plans and lammers (PPC), 4800000 34000 70.000.000 $2,000,000 Statement of retained earnings BOY and $1,000,000 170,000 200.000 Accounts payable $500,000 140000 O 10.000 32,000 Acred Sales 1,200.000 167000 Ending and harmings 400,000 548,000 Longserm labies 2,800.000 500.000 Commock 40,000 100,000 APC 2.800.000 125,000 Retained sarings 240.000 94000 $10,000,000 $2,000,000 At what amount will the following accounts appear on the consolidated financial statements? Note: Do not use negative signs with your answers. a. Sales b. Equity income c. Operating expenses d. Accounts receivable e. Equity investment $ 7,500,000 S 06 $ 1,430,000 $ 1,348,000 $ 0 f. Property plant and equipment (PPE) net s &Goodwill 5,624,000 x 400,000 h. Common stock LRetained earnings S 640,000 $ 2,460,000