Foxx Corporation acquired all of Greenburg Company's outstanding stock on January 1, 2016, for $724,000 cash. Greenburg's accounting records showed net assets on that date of $560,000, although equipment with a 10-year life was undervalued on the records by $87,500. Any recognized goodwill is considered to have an indefinite life. Greenburg reports net income in 2016 of $108,500 and $121.000 in 2017. The subsidiary declared dividends of $20,000 in each of these two years. Account balances for the year ending December 31, 2018, follow. Credit balances are indicated by parentheses Revenues Cost of goods sold Depreciation expense Investment income (996,000) 124,500 366,000 (20,000) (804,000) 201,000 359,000 Net income (525,500)(244,000) Retained earnings, 1/1/18 Net income Dividends declared $ (1,236,000)$ (328,000) (244,000) 20,000 (525 500) 120,000 s (1,641,500) (552,000) $391,000104,000 Retained earnings, 12/31/18 Current assets Investinent in subsidiary Equipment (net) Buildings (net) Land 724,000 986,000 976,000 610,000 3,687,000 (1,145,500) 602,000 552,000 142 000 $ 1,400,000 Total assets (548,000) Liabilities Common stock Retained earnings (300,000) (1641,500)552,000) (900,000) Total liabilities and equity $(3,687,000)S(.400:000) a. Determine the December 31, 2018, consolidated balance for each of the following accounts Depreciation Expense Dividends Declared Revenues Equipment Buildings Goodwill Common Stock b. How does the parent's choice of an accounting method for its investment affect the balances computed in requirement (a)? c. Which method of accounting for this subsidiary is the parent actually using for internal reporting purposes? d. Determine parent's investment income for 2018 under partial equity method and equity method. e. What would be Foxx's balance for retained earnings as of January 1, 2018, if each of the following methods had been in use? . Initial value method. Partial equity method. . Equity method. Complete this question by entering your answers in the tabs below. Req A Req B and C Req D and E Determine the December 31, 2018, consolidated balance for each of the following accounts: Consolidated Balances Depreciation expense Dividends declared Revenues Equipment Buildings Goodwill Common stock Req B and c> b. How does the parent's choice of an accounting method for its investment affect the balances computed in requirement (a)? c. Which method of accounting for this subsidiary is the parent actually using for internal reporting purposes? d. Determine parent's investment income for 2018 under partial equity method and equity method. e. What would be Foxx's balance for retained earnings as of January 1, 2018, if each of the following methods had been in use? Initial value method. Partial equity method. Equity method. Complete this question by entering your answers in the tabs below. Req A Req B Ind C Req D and E - b. How does the parent's choice of an accounting method for its investment affect the balances computed in requirement (0) c. Which method of accounting for this subsidiary is the parent actually using for internal reporting purposes? b. Yes, affects consolidated totals ONo, doesn't affect consolidated totals but only internal reporting of parent ONo, neither affects consolidated totals nor internal reporting of parent Initial value method c. Partial equity method Equity method b. How does the parent's choice of an accounting method for its investment affect the balances computed in requirement (al? c. Which method of accounting for this subsidiary is the parent actually using for internal reporting purposes? d. Determine parent's investment income for 2018 under partial equity method and equity method. e. What would be Foxx's balance for retained earnings as of January 1, 2018, if each of the following methods had been in use? . Initial value method. Partial equity method. Equity method. Complete this question by entering your answers in the tabs below Req A Req B and CReq D and E d. Determine parent's investment Income for 2018 under partial equity method and equity method e. What would be Foxx's balance for retained earnings as of January 1, 2018, if each of the following methods had been in use? d. Investment e. Retained Earnings Initial value method Partial equity method Equity methood Req B and C