D. What would be Investment income if each of the following methods had been in use?

E. What would be Foxxs balance for retained earnings as of January 1, 2024, if each of the following methods had been in use?

• Initial value method.
• Partial equity method.
• Equity method.

Foxx Corporation acquired all of Greenburg Company's outstanding stock on January 1, 2022, for $816,000 cash. Greenburg's accounting records showed net assets on that date of $587,000, although equipment with a 10-year remaining life was undervalued on the records by $183,000. Greenburg reports net income in 2022 of $91,000 and $108,000 in 2023. The subsidiary declared dividends of $20,000 in each of these two years. Account balances for the year ending December 31, 2024, follow. Credit balances are indicated by parentheses. Items Revenues Cost of goods sold Depreciation expense Investment income Net income Retained earnings, 1/1/24 Net income Dividends declared Retained earnings, 12/31/24 Current assets Investment in subsidiary Equipment (net) Buildings (net) Land Total assets Liabilities Common stock Retained earnings Total liabilities and equity Foxx $ (1,196,000) 149,500 476,000 (20,000) $ (590,500) $ (1,108,000) (590,500) 120,000 $ (1,578,500) $ 363,000 816,000 1,064,000 882,000 728,000 $ 3,853,000 $ (1,374,500) (900,000) (1,578,500) $ (3,853,000) Greenburg $ (912,000) 228,000 435,000 $ (249,000) $ (446,000) (249,000) 20,000 $ (675,000) $ 143,000 0 746,000 528,000 118,000 $ 1,535,000 $ (560,000) (300,000) (675,000) $ (1,535,000)