Following are separate financial stacements of Mx Company and Air Company as of December 31 , 2021 (eredit balances indicated by parantheses) Mx acquired al of Air's outstanding voting stoek on January 1. 2017, by issuing 20.000 whares of is own $1 par common sock. On the acquision date. Mx's company stock taded at $23.50 per share. On the date of acquisition. Air seported retained earnings of $230,000 and a total bock value of $360,000. Al the tme, As royaly agreements were undervalued by $60.000. This intang bie was assumed to have a 6 year femairing life with ne residual val Additonaly. Air owned a trademark with a fair value of $50.000 and a 10 year remaining lie that was not reflected in ahs boeks. Air declared and paid dividends in the same period. Required (Use the "Template for Response" tab to answer the questions) a. Using the preceding information. prepare a consoldabed worksheet for these two compunies as of December 31. 2021. b. Instead of the inifal value method, assume now that Max apples the equity method to its investment in Air account. What accourt balances would the parent's individual financial statements then show for the Equity in subsidiacy Eamings. Retained Eamings, and levestment in Air accounts? c. Assuming that Max appled the equily method to its imestment, how would the consolideted entries differ on December 31 , 2021 worksheet? d. Assuming that Max appled the equaty method to this imvestment, how would the Desember 31. 2021, reported consolidated belances differ