cibe why the "Deferred tax liabilities" account is increased by S 37. Determining ending consolidated balances in the second year following the acquisition-Equity method in excess of was assigned to the following IA] assets: in excess of the subsidiary s cguired a subsidiary on January 1, 2015. The purchase price was $745,000 date, and that excess the subsidiary's book value of Stockholders' Equity on the acquisition Original Useful Life Original AJ Asset Amount $360,000 385,000 $745,000 Property, plant and equipment (PPE), net Goodwill 15 years Indefinite The AAP asset relating to undervalued PPE with a 15-year useful life has been depreciated as part of the parent's equity method accounting, The financial statements of the parent and its subsidiary for the year ended December 31, 2016, are as follows: Parent Subsidiary Parent Subsidiary Income statement: Sales Cost of goods sold. Balance sheet: .. $6,875,000 $1,500,000 Assets 1,760,000 348,000 Gross profit. Equity income. 1,925,000 600,000 Accounts receivable... 186,000 Inventory .1,875,500 827,000 Net income $1079,750 210,000 Property, plant and equipment $21,804,813 $2,008,500 Statement of retained earnings: $4,639,750 775,000 Liabilities and stockholders' equity 187,000 . 1,196,250 8,750,000 640,563 4,709,000 5,502,500 . (217,000) (31,500) Accrued liabilities.... 500,000 100,000 125,000 953,500 Common stock APIC. . Retained earnings.. $21,804,813 $2,008,500 At what amount will the following accounts appear on the consolidated financial statements? a. Sales b. Equity income C. Operating expenses d. Accounts receivable e. Equity investment f. g. h. i. Property, plant and equipment (PPE), net Goodwill Common stock Retained earnings