Can you help me answer the following questions below. Thank you!!
Receivables and inventory 564,666 634,666 Cash 199, 888 227, 869 Total assets $ 2,556,666 $ 1,629,666 Ordinary shares $ 768,666 $ 664,666 Retained earnings 1,129,666 432,666 Liabilities 719,666 593,666 Total equities and liabilities $ 2,556,666 $ 1,629,666 ' Required: (3) Prepare a schedule of changes to the acquisition differential for Years 4 and 5. (Leave no cells blank - be certain to enter "0" wherever required. Negative/Deductible amounts should be indicated by a minus sign. Omit $ sign in your response.) Balance Balance Jan. 1 Changes Dec. 31 Year 4 Year 4 Year 5 Year 5 Investment in bonds :5 5 $ $ Goodwill $|:| $|:| $|:| $|:| (b) Calculate investment in bonds and goodwill for the consolidated balance sheet at the end of Year 5. (Omit 35 sign in your response.) Investment in bonds 5 Goodwill $ (c) Calculate investment income from Fazli and investment in Fazli account balances for Cyrus's separate entity nancial statements for Year 5, assuming Cyrus uses the: (Omit $ sign in your response.) (i) Cost method Cost Method Investment income from Fazli $ Investment in Fazli $ (ii) Equity method Equity Method Investment income from Fazli 5 Investment in Fazli 5 (d) Whether the parent's method ofaccounting for its investment in Fazli affect the amount reported for expenses in its December 31, Year 5, consolidated income statement? 0 Yes No (e) Whether the parent's method of accounting for its investment in Fazli affect the amount reported for investment in bonds in its December 31, Year 5, consolidated balance sheet? 0 Yes No (f) What is Cyrus's January 1, Year 5, retained earnings account balance on its separate entity financial statements assuming Cyrus accounts for its investment in Fazii using the: (i) Cost method? (ii) Equity method? (Omit $ sign in your response.) Retained earnings (i) Cost Method 5 (ii) Equity Method $ (9) What are consolidated retained earnings at January 'I, Year 5, assuming Cyrus accounts for its investment in Fazli using the: (i) Cost method? (ii) Equity method? (Omit $ sign in your response.) Retained earnings (1) Cost Method 3 (ii) Equity Method $ On January 1, Year 4, Cyrus Inc. paid $929,000 in cash to acquire all of the ordinary shares of Fazli Company. On that date, Fazli's retained earnings were $215,000. All of Fazli's assets and liabilities had fair values equal to carrying amounts except for an investment in bonds, which was worth $13,180 more than carrying amount and will mature on December 31, Year 8. The recoverable amount for goodwill was $60,000 at the end of Years 4 and 5. In Year 4, Cyrus reported net income from its own operations (exclusive of any income from Fazli) of $140,000 and declared no dividends. In Year 4, Fazli reported net income of $105,000 and paid a $55,000 cash dividend. Cyrus uses the cost method to report its investment in Fazli and uses the effective interest method to amortize premiums or discounts on investment in bonds. The amortization of the acquisition differential pertaining to the investment in bonds was $2,655 in Year 4 and $2,660 in Year 5. The financial statements for Cyrus and Fazli for the year ended December 31, Year 5, were as follows: Cyrus FazLi Revenues and investment income $ 1,673,666 $ 994,666 Expenses (794,666) (836,666) Pr'o'Fit $ 284, 666 $ 164, 666 Retained earnings, Ill/Year 5 $ 964,666 $ 325,666 Pr'O'Fit 284, 866 164, see Dividends paid (119,666) (57,666) Retained earnings, 12/31/Year 5 $ 1,129,666 $ 432,666 Equipment (net) $ 864,666 $ 436,666 Investment in Fazli 929,666 6 Investment in bonds 6 332,666
