Check my w Foxx Corporation acquired all of Greenburg Company's outstanding stock on January 1, 2016, for $614,000 cash. Greenburg's accounting records showed net assets on that date of $457,000, although equipment with a 10-year life was undervalued on the records by $111,000. Any recognized goodwill is considered to have an indefinite life. Greenburg reports net income in 2016 of $94,500 and $143,500 in 2017. The subsidiary declared dividends of $20,000 in each of these two years Account balances for the year ending December 31, 2018, follow. Credit balances are indicated by parentheses. Revenues Cost of goods sold Depreciation expense Investment income $ (828,000) 103,500 328,000 (764,000) 191,000 441,000 (20,000) Net incone $ (416,500) (132,000) Retained earnings, 1/1/18 Net income (1,150, 000) (338,000) (132,000) 20,000 $(1,446,500) (450, 000) (416,500) 120,000 Dividends declared Retained earnings, 12/31/18 Current assets Investment in subsidiary Equipment (net) buiidinga (net) Land $ 323,000 $ 122,000 614,000 1,022,000 874,000 726,000 730, 000 420,000 103,000 Total assets 3,559,000 1,375,000 Liabilities Common stock Retained earnings (1,212,500) (625,000) (300,000) 1:446,500) (450,000) $ (3,559,000) (1,375,000) 900,000) Total liabilities and equity Prev 2 of 13 Next>