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Foxx Corporation acquired all of Greenburg Company's outstanding stock on January 1, 2019. for $662,000 cash. Greenburg's accounting records showed net assets on that date

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Foxx Corporation acquired all of Greenburg Company's outstanding stock on January 1, 2019. for $662,000 cash. Greenburg's accounting records showed net assets on that date of $490,000, although equipment with a 10-year remaining life was undervalued on the records by $99.500. Any recognized goodwill is considered to have an indefinite life Greenburg reports net income in 2019 of $106,000 and $133,000 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. Revenues FOXX Greenburg 3 (912,000) 5 (764) Cost of goods sold 114,00 191,000 Depreciation expense 370, 405,000 Investment income 20.000 Net Income 3 (448,10) (162.000) itetained earnings, 1/1/21 (1) 204,000) (18), NO Net income (445,000 (1627000) Dividends declared 1120 20.00 Retained earnings, 12/31/21 (1,532.00 $ (536.000 Current assets 342,000 $ 10,00 Investment in subsidiary 2 Equipment (net) out. 06, No Buildings (net) 022, 412. Land 10.000 Total assets 2.728.000 $ 132, LADI Les $120.00) duide common stock con.eu Bet ained earnings NO $15. StR linalities and equity $190) 5 Complete this question by entering your answers in the tabs below. Req A Req B and C Reg D and E Determine the December 31, 2021, consolidated balance for each of the following accounts (Input all amount as positive values.) Consolidated Balances Depreciation expense Dividends declared Revenues Equipment Buildings Goodwill Common stock Complete this question by entering your answers in the tabs below. Req A Req B and 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 (a)? c. Which method of accounting for this subsidiary is the parent actually using for internal reporting purposes? b It affects the consolidated totals It affects the internal reporting of the parent, but not the consolidated totals It doesn't have any affect 0 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 Readhonde d. Determine parent's investment income for 2021 under partial equity method and equity method. e. What would be Foxx's balance for retained earnings as of January 1, 2021, if each of the following methods had been in use? d. Investment Income Retained Earnings Initial value method Partial equity method Equity method

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