Foxx Corporation acquired all of Greenburg Company$$s outstanding stock on January $1,2019,$ for $$640,000$ cash. Greenburg$$s accounting records showed net assets on that date of $$465,000,$ although equipment with a $10-$year remaining life was undervalued on the records by $$86,500.$ Any recognized goodwill is considered to have an indefinite life.

Greenburg reports net income in $2019$ of $$130,500$ and $$126,000$ in $2020.$ The subsidiary declared dividends of $$20,000$ in each of these two years.

Account balances for the year ending December $31,2021,$ follow. Credit balances are indicated by parentheses.

Foxx Greenburg

Revenues $ $(948,000)$ $ $(764,000)$

Cost of goods sold $118,500191,000$

Depreciation expense $312,000443,000$

Investment income $(20,000)0$

Net income $ $(537,500)$ $ $(130,000)$

Retained earnings, $1/1/21$ $ $(1,198,000)$ $ $(381,500)$

Net income $(537,500)(130,000)$

Dividends declared $120,00020,000$

Retained earnings, $12/31/21$ $ $(1,615,500)$ $ $(491,500)$

Current assets $ $340,000$ $ $127,000$

Investment in subsidiary $640,0000$

Equipment $($net$)966,000634,000$

Buildings $($net$)928,000580,000$

Land $686,000105,000$

Total assets $ $3,560,000$ $ $1,446,000$

Liabilities $ $(1,044,500)$ $ $(654,500)$

Common stock $(900,000)(300,000)$

Retained earnings $(1,615,500)(491,500)$

Total liabilities and equity $ $(3,560,000)$ $ $(1,446,000)$

Determine the December $31,2021,$ consolidated balance for each of the following accounts:

Depreciation Expense Buildings

Dividends Declared Goodwill

Revenues Common Stock

Equipment

How does the parent's choice of an accounting method for its investment affect the balances computed in requirement $($a$)?$

Which method of accounting for this subsidiary is the parent actually using for internal reporting purposes?

Determine parent's investment income for $2021$ under partial equity method and equity method.

What would be Foxx$$s balance for retained earnings as of January $1,2021,$ if each of the following methods had been in use?

Initial value method.

Partial equity method.

Equity method.