Foxx Corporation acquired all of Greenburg Company's outstanding stock on Janusry $1,2022,$ for $$816,000$ cash. Greenburg's

accounting records showed net sasets on that date of $$587,000,$ although equipment with a $10-$year remaining life was undervalued on

the records by $$183,000.$

Greenburg reports net income in $2022$ of $$91,000$ and $$108,000$ 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.

Required:

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

Deprecistion Expense

Dividends Declared

Revenues

Equipment

Buildings

Goodwill

Common Stock

b$.$ How does the porent's choice of an accounting method for its investment affect the bolances computed in requirement part $($a$)?$

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

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

e$.$ What would be Foxx's balance for retained earnings os of January $1,2024,$ if each of the following methods had been in use?

Initial value method.

Portiol equity method.

Equity method.

Complete this question by entering your answers in the tabs below.

Req D and E

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

e$.$ What would be Foxx's balance for retained earnings as of January $1,2024,$ if each of the following methods had been in

use?