For each of the 6 investments held by Thompson at December 31, 2019, please provide the ending balance that each investment would have in Thompson's unconsolidated balance sheet along with Thompson's equity earnings (a through g).

Then provide Thompson's consolidated balance sheet and income statement.Provide your worksheets and supporting calculations (in good form) and any assumptions you have made.You may need to make some assumptions.Please provide a list of these assumptions.If there is missing information, for example, you might choose to use an assumed number.

Note 7: Intercompany investments

Thompson Company has a variety of investments in other companies.Thompson has a policy of using the complete equity method to account for intercompany investments meeting the criteria for its application.The following provides more information on these investments.

Lake Corporation

Thompson Company purchased all of the outstanding shares of Lake Corporation on January 1^st, 2019 for $230,000. At that time, Lake had common stock with a book value of $100,000.The difference between the acquisition price and underlying book value is assigned to buildings and equipment with a remaining economic life of 10 years from the date of acquisition.At December 31, 2019, Lake owed Thompson $2,500 for services provided during 2019.

Lake Corporation is an American company and its functional currency is US dollars.

Thompson sold land to Lake during 2019 for $50,000.This land was still held by Lake at December 31^st, 2019.

River Corporation

Thompson Company purchased all of the outstanding shares of River Corporation on January 1^st, 2018 for 400,000.At that time River had common stock with a book value of 135,000 and retained earnings of (20,000).All of River's asset and liability book values approximated fair values at acquisition except for buildings and equipment that were overvalued by $30,000.

River Company is a British company and its functional currency is British pounds.

Mountain Corporation

Thompson Company purchased all of the outstanding shares of Mountain Corporation on January 1^st, 2017 for $218,000.At that time Mountain had common stock with a book value of $108,000.Retained earnings of Mountain at the date of acquisition were $10,000.At acquisition all of Mountain's asset and liability book values approximate fair values.

Mountain Corporation is an American company and its functional currency is US dollars.

In 2018, goodwill on this investment was impaired by 10%.

Mountain had income of $20,000 in 2017 and paid no dividends in 2017.

Beach Company

Thompson Company purchased 75% of the outstanding shares of Beach Corporation on January 1^st, 2018 for $100,000.At that time Beach had common stock with a book value of $132,000.Retained earnings of Beach at the date of acquisition were $10,000.The fair value of 25% of Beach at the date of acquisition was approximated to be $25,000.At acquisition all of Beach's asset and liability book values approximate fair values.

Beach Corporation is an American company and its functional currency is US dollars.

City Corporation

Thompson Company purchased 55% of the outstanding shares of City Corporation on January 1^st, 2018 for $500,000.At that time City had common stock with a book value of $90,000.Retained earnings of City at the date of acquisition were $10,000.The fair value of the 45% of City that was not acquired by Thompson was approximated to be have a fair value $280,000 at the date of acquisition.At acquisition, all of City's asset and liability book values approximate fair values except for its buildings and equipment that were undervalued by $20,000.

City Corporation is an American company and its functional currency is US dollars.

Half of City' service revenues are related to services provided to Thompson during 2019.

Goodwill on the purchase was impaired during 2019 by $20,000.

Island Corporation

Thompson Company purchased 45% of the outstanding shares of Island Corporation on January 1^st, 2018 for $50,000.At that time Island had common stock with a book value of $75,600.Retained earnings of Island at the date of this purchase were $20,000.The fair value of the 55% of Island that was not purchased by Thompson was approximated to be have a fair value $280,000 at the date of the purchase.All of Island's asset and liability book values approximated fair values except for its buildings and equipment that were undervalued by $20,000.

Island Corporation is an American company and its functional currency is US dollars.

1/3 of Island's service revenues are related to services provided to Thompson during 2019.

A B C D E G H K M N O Thompson Company Lake Corporation River Corporation Mountain Corporation Beach Company City Corporation Island Company Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash $74,000 $42,000 (56,700 $45,360 $46,200 $37,800 $31,752 Accounts receivable 130,000 53,000 71,550 57,240 58,300 47,700 40,068 Land 60,000 50,000 67,500 54,000 55,000 45,000 37,800 Buildings & equipment 500,000 350,000 472,500 378,000 385,000 315,000 264,600 Investment in Lake a Investment in River b Investment in Mountain C Investment in Beach d Investment in City e Investment in Island f Cost of services provided 470,000 130,000 175,500 140,400 143,000 117,000 98,280 Depreciation expense 35,000 18,000 24,300 19,440 19,800 16,200 13,608 Other expenses 57,000 60,000 81,000 64,800 66,000 54,000 45,360 Dividends declared 30,000 12,000 16,200 12,960 13,200 10,800 9,072 Accumulated depreciation $265,000 $93,000 f125,550 $100,440 $102,300 $83,700 $70,308 Accounts payable 71,000 17,000 22,950 18,360 18,700 15,300 12,85 Wages payable 58,000 60,000 81,000 64,800 66,000 54,000 45,360 Notes payable 100,000 85,000 114,750 91,800 93,500 76,500 64,260 Common stock 200,000 100,000 135,000 108,000 110,000 90,000 75,600 Retained earnings, Jan 1. 2019 292,000 120,000 162,000 129,600 132,000 108,000 90,720 Service revenue 610,000 240,000 324,000 259,200 264,000 216,000 181,440 Gain on sale of land to Lake 40,000 Equity earnings g