Determining ending consolidated balances in the second year following the acquisition-Cost method Assume a parent company acquired a subsidiary on January 1, 2018, for $1.200,000. The purchase price was $650.000 in excess of the subsidiary: 5550,000 book value of Senckholdere Equity on the acquisition date of this excess purchase price, $250,000 was assigned to property, plant and equipment with a remaining economic useful life of 10 year, and $400,000 was asigned to Goodwill. On the acquisition date, the subsidiary reported retained earnings equal to $280.000. The parent uses the cost method of pre-consolidation Equity Investment bookkeeping. The financial statements of the parent and its subsidiary for the year ended December 31, 2019, are as follows Parent Subsidiary Parent Subsidiary income statement Balance sheet 35.000.000 $1,200.000 Cost of goods sold 2.000.000 0700,0001 C $100.000 150.000 Gross pront 2.000.000 500,000 Accounts rece 1.000.000 140.000 Equity income 40.000 Inventory Operating expenses 11.500.000 1400.000 Eur $540,000 $100.000 Property mant Statement of retained earnings 17.000.000.000 Daines 1.500.000 600.000 es dochody Net income 100 000 Aube $140.000 Drvidendi 160.0001 Acer 77000 100.000 100.000 am the retained marine 500.000 1.000.000 1.200.000 1.000.000 00000 Net income 0.000 S40,000 000.000 11.000 10 AN 1500 LO 4000 Web $ 5 At what amount will the following accounts appear on the consolidated financial statements? Do not use negative signs with any of your answers. a. Sales 6,200,000 b. Investment income $ 40,000 x Operating expenses 1,900,000 X d. Inventories $ 2,100,000 e. Equity Investment $ 1,200,000 x f. Property, plant & equipment, net s 39,000,000 * g Goodwill $ 400,000 h. Common stock s 620,000 x Retained earnings $ 2,500,000 X