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 $500,000 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 Amount (years) Property, plant and equipment (PPE), net $250,000 Goodwill 250,000 Indefinite $500,000 20 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 Parent Subsidiary Income statement: Balance sheet: Sales $5,500,000 $1,220,000 Assets Cost of goods sold (3.960,000) (720,000) Cash $1,005,550 $329,200 Gross profit 1.540,000 500,000 Accounts receivable 1,388,000 278.400 Equity income 175,500 Inventory 2,134,000 357,600 Operating expenses (825,000) (312,000) Equity investment 1,437,800 Net incarne $890,500 $188,000 Property, plant and equipment (PPE), net 11,365,200 661,600 $17,330,550 $1,626, 800 Statement of retained earnings: BOY retained earnings $3,614,300 $620,000 Liabilities and stockholders' equity Net income 890,500 188,000 Accounts payable $805,200 $114,400 Dividends (196,100) (25.200) Accrued liabilities 957,000 149,600 Ending retained earnings $4,308,700 $782,800 Long-term liabilities 7,000,000 400,000 Common stock 492,450 80,000 3,767,200 100,000 Retained earnings 4,308,700 782,800 $17,330,550 $1,626,800 APIC Equity income Operating expenses Net income 175,500 (825,000) $890,500 Inventory (312,000) Equity investment $188,000 Property, plant and equipment (PPE), net 2,134,000 357,600 1,437,800 11,365,200 661,600 $17,330,550 $1,626, 800 Statement of retained earnings: BOY retained earnings Net income Dividends Ending retained earnings $3,614,300 890,500 (196,100) $4,308,700 $620,000 Liabilities and stockholders' equity 188,000 Accounts payable (25,200) Accrued liabilities $782,800 Long-term liabilities Common stock APIC Retained earnings $805,200 $114,400 957.000 149,600 7,000,000 400,000 492.450 80,000 3,767,200 100,000 4,308,700 782.800 $17,330,550 $1,626,800 $ $ At what amount will the following accounts appear on the consolidated financial statements? Note: Do not use negative signs with your answers. a. Sales 0 b. Equity income $ 0 C. Operating expenses d. Accounts receivable $ e. Equity investment $ 0 f. Property plant and equipment (PPE) net $ g Goodwill 0 h. Common stock i. Retained earnings O O 0 $ $ 0 $ 0 Check