1. ABC company acquires 100% of the outstanding shares of XYZ, Inc. on 1/1/2020. To obtain these shares, the ABC paid $300000 cash and issued 10000 shares of $1 par value common stock. On this date, the ABC stock had a fair value of$10 per share. At the date of acquisition, the book value of XYZs net assets was $510000 and the fair value of the net asset was $60000. The difference in fair value and book value was due solely to undervalued equipment, with the remaining 5 years of life expectancy.

During 2020, XYZ reported a net loss of$11000 and paid a cash dividend of $5000.

1. Assuming ABC accounts for XYZ internally using the Equity method, what is the December 31, 2020 balance in ABCs investment in XYZ account?
2. If ABC accounts for the XYZ internally using the initial value(cost) method, what amount does ABC recognize in its 2020 income from XYZ?
3. Assuming ABC accounts for XYZ internally using the partial equity method what is the December 31, 2020, amount in ABCs investment in XYZ account?