Foxx Corporation acquired all of Greenburg Companys outstanding stock on January 1, 2022, for $655,000 cash. Greenburgs accounting records showed net assets on that date of $462,000, although equipment with a 10-year remaining life was undervalued on the records by $120,500.

Greenburg reports net income in 2022 of $124,500 and $118,500 in 2023. The subsidiary declared dividends of $20,000 in each of these two years.

Account balances for the year ending December 31, 2024, follow. Credit balances are indicated by parentheses.

Items	Foxx	Greenburg
Revenues	$ (1,032,000)	$ (684,000)
Cost of goods sold	129,000	171,000
Depreciation expense	352,000	445,000
Investment income	(20,000)	0
Net income	$ (571,000)	$ (68,000)
Retained earnings, 1/1/24	$ (1,240,000)	$ (365,000)
Net income	(571,000)	(68,000)
Dividends declared	120,000	20,000
Retained earnings, 12/31/24	$ (1,691,000)	$ (413,000)
Current assets	$ 333,000	$ 154,000
Investment in subsidiary	655,000	0
Equipment (net)	1,080,000	760,000
Buildings (net)	886,000	454,000
Land	754,000	168,000
Total assets	$ 3,708,000	$ 1,536,000
Liabilities	$ (1,117,000)	$ (823,000)
Common stock	(900,000)	(300,000)
Retained earnings	(1,691,000)	(413,000)
Total liabilities and equity	$ (3,708,000)	$ (1,536,000)

Required:

Determine the December 31, 2024, consolidated balance for each of the following accounts:

Depreciation Expense

Dividends Declared

Revenues

Equipment

Buildings

Goodwill

Common Stock

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

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

What would be Investment income if each of the following methods had been in use?

What would be Foxxs balance for retained earnings as of January 1, 2024, if each of the following methods had been in use?

• Initial value method.
• Partial equity method.
• Equity method.