Determining ending consolidated balances in the third year following the acquisition-Cost method Assume a parent company acquired a subsidiary on January 1, 2017, for $1,100,000. The purchase price was $750,000 in excess of the subsidiary's $350,000 book value of Stockholders' Equity on the acquisition date. Of this excess purchase price, $500,000 was assigned to Property, plant and equipment with a remaining economic useful life of 10 years, and $250,000 was assigned to Goodwill. On the acquisition date, the subsidiary reported retained earnings equal to $80,000. The parent uses Investment 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 Income statement: Balance sheet: Sales $2,400,000 $950,000 Assets Cost of goods sold (1,300,000) (560,000) Cash Gross profit 1,100,000 Investment income 50,000 390,000 Accounts receivable Inventory Operating expenses (600,000) (260,000) Equity investment Net income $550,000 $130,000 Property, plant and equipment (PPE), net Statement of retained earnings: Parent Subsidiary $1,000,000 $150,000 1,500,000 240,000 2,400,000 530,000 1,100,000 4,000,000 1,000,000 $10,000,000 $1,920,000 BOY retained earnings Net income $1,500,000 $500,000 Liabilities and stockholders' equity Dividends Ending retained earnings 550,000 130,000 Accounts payable (250,000) (50,000) Accrued liabilities $1,800,000 $580,000 Long-term liabilities $1,000,000 Common stock APIC Retained earnings $170,000 800,000 200,000 3,000,000 700,000 500,000 120,000 2,900,000 150,000 1,800,000 580,000 $10,000,000 $1,920,000 At what amount will the following accounts appear in the consolidated financial statements for the year ended December 31, 2019? Account a. Sales $ Amount 3,350,000 b. Investment Income $ c. Operating expenses $ 340,000 x d. Inventories $ 2,930,000 e. Equity investment $ 0 f. PPE, net $ 5,000,000 x g. Goodwill $ 0 h. Common Stock 620,000 x i. Retained Earnings $ 2,380,000 x