a$.$ Which Investment method did Kelsey use to compute the $$379\mathrm{.}200$ income from Snowdon?

b$.$ Determine the totals to be reported for this business combination for the year ending December $31.$

c$.$ Verify the totals determined in part $($b$)$ by producing a consolidation worksheet for Kelsey and Snowdon for the year ending

December $31.$

Kelsey Corporation acquired $100$ percent of Snowdon Company's outstanding common stock on January $1$ for $$711,100$ in cash.

Snowdon reported net assets with a carrying amount of $$447,000$ at that time. Some of Snowdon's assets elther were unrecorded

$($having been internally developed$)$ or had fair values that differed from book values as follows:

No Impalrment charges occurred during the year.

The following are financlal statements at the end of the first year for these two companies prepared from thelr separately maintained

accounting systems. Snowdon declared and pald dividends in the same period. Credit balances are indicated by parentheses.