Check my wor Haynes, Inc., obtained 100 percent of Turner Company's common stock on January 1, 2017, by issuing 10,600 shares of $10 par value common stock. Haynes's shares had a $15 per share fair value. On that date, Tumer reported a net book value of $123,500. However, its equipment with a five-year remaining life) was undervalued by $5,200 in the company's accounting records. Also, Turner had developed a customer list with an assessed value of $30,300, although no value had been recorded on Turner's books. The customer list had an estimated remaining useful life of 10 years. The following balances come from the Individual accounting records of these two companies as of December 31, 2017 Haynes Turner Revenues $ (715,000) $ (299,000) Expenses 530,000 145,000 Investment income Not given Dividends declared 90,000 70,000 The following balances come from the individual accounting records of these two companies as of December 31, 2018: Haynes Turner Revenues $ (827,000) $ (354,500) Expenses 555,300 175,400 Investment income Not given Dividends declared 100,000 50,000 Equipment 530,000 327,000 C Complete this question by entering your answers in the tabs below. Req A to C2 Reg D ook a. What balance does Haynes's Investment in Turner account show on December 31, 2018, when the equity method is applied? b. What is the consolidated net income for the year ending December 31, 2018? c-1. What is the consolidated equipment balance as of December 31, 20187 c-2. Would this answer be affected by the investment method applied by the parent? ences Show less b Investment in Turner account Consolidated net income Consolidated equipment Would this answer be affected by the investment method applied by the parent? c-1 c-2 Roho Reg D > Req Ato C2 Check Reg D Prepare entry "C for the beginning of the Retained Earnings account on a December 31, 2018 by using initial value, partial equity and equity method. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) view transaction list K Consolidation Worksheet Entries nces 2 3 Prepare entry *c if the parent used the initial value method. Note: Enter debits before credits Accounts Debit Credit Date December 31, 2018 ReqD Prepare entry *c for the beginning of the Retained Earnings account on a December 31, 2018 by using initial value, partial equity and equity method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries 2 3 > Prepare entry "c if the parent used the partial equity method. Note: Enter debits before credits Accounts Debit Credit Date December 31, 2018 Proy Nav Check my Reg A to C2 Reg D Prepare entry for the beginning of the Retained Earnings account on a December 31, 2018 by using initial value, partial equity and equity method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries
