Determining ending consolidated balances in the second year following the acquisition-Equity method Assume that your company acquired a subsidiary on January 1, 2012. The purchase price was $550,000 in excess of the subsidiary's book value of Stockholders' Equity on the acquisition date, and that excess was assigned to the following [A] assets: Original Original Useful Life [A] Asset Property, plant and equipment (PPE), net $275,000 Goodwill Amount (years) 20 275,000 Indefinite $550,000 The AAP asset relating to undervalued PPE with a 20-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, 2013, are as follows: Parent Subsidiary Subsidiary Parent Income statement: Balance sheet: Sales $5,500,000 $1,215,000 Assets Cost of goods sold (3,960,000) (720,000) Cash $1,011,800 $324,200 Gross profit 1,540,000 Equity income 169,250 Operating expenses Net income 495,000 Accounts receivable Inventory (825,000) (312,000) Equity investment $884,250 1,393,000 278,400 2,134,000 357,600 1,480,300 $183,000 Property, plant and equipment (PPE), net 11,365,200 $17,384,300 $1,621,800 661,600 Statement of retained earnings: BOY retained earnings $3,663,050 $620,000 Liabilities and stockholders' equity Net income 884,250 183,000 Accounts payable Dividends (189,850) (25,200) Accrued liabilities Ending retained earnings $4,357,450 $777,800 Long-term liabilities 957,000 7,000,000 400,000 $805,200 $114,400 149,600 Common stock APIC Retained earnings 497,450 80,000 3,767,200 100,000 4,357,450 777,800 $17,384,300 $1,621,800 At what amount will the following accounts appear on the consolidated financial statements? Note: Do not use negative signs with your answers. a. Sales b. Equity income c. Operating expenses d. Accounts receivable e. Equity investment $ $ $ $ $ f. Property plant and equipment (PPE) net $ g. Goodwill $ h. Common stock i. Retained earnings $ $