Foxx Corporation acquired all of Greenburg Companys outstanding stock on January 1, 2011, for $600,000 cash. Greenburgs accounting records showed net assets on that date of $470,000, although equipment with a 10-year life was undervalued on the records by $90,000. Any recognized goodwill is considered to have an indefinite life. Greenburg reports net income in 2011 of $90,000 and $100,000 in 2012. The subsidiary paid dividends of $20,000 in each of these two years. Financial figures for the year ending December 31, 2013, follow. Credit balances are indicated by parentheses. Foxx Greenburg Revenues $ (800,000) $ (600,000) Cost of goods sold 100,000 150,000 Depreciation expense 300,000 350,000 Investment income (20,000) 0 Net income $ (420,000) $ (100,000) Retained earnings, 1/1/13 $ (1,100,000) $ (320,000) Net income (420,000) (100,000) Dividends paid 120,000 20,000 Retained earnings, 12/31/13 $ (1,400,000) $ (400,000) Current assets $ 300,000 $ 100,000 Investment in subsidiary 600,000 0 Equipment (net) 900,000 600,000 Buildings (net) 800,000 400,000 Land 600,000 100,000 Total assets $ 3,200,000 $ 1,200,000 Liabilities $ (900,000) $ (500,000) Common stock (900,000) (300,000) Retained earnings (1,400,000) (400,000) Total liabilities and equity $ (3,200,000) $ (1,200,000) Note: Parentheses indicate a credit balance. a. Determine the December 31, 2013, consolidated balance for each of the following accounts: (Input all amounts as positive values.) Consolidated Balances Depreciation expense $ Dividends paid $ Revenues $ Equipment $ Buildings $ Goodwill $ Common stock $ b. Whether parents choice of an accounting method for its investment affect the balances computed in requirement (a)? No, doesnt affect consolidated totals but only internal reporting of parent No, neither affects consolidated totals nor internal reporting of parent Yes, affects consolidated totals c. Which method of accounting for this subsidiary is the parent actually using for internal reporting purposes? Initial value method Partial equity method Equity method d. Determine parent's investment income for 2013 under partial equity method and equity method. Investment Income Partial equity method $ Equity method $ e. What would be Foxxs balance for retained earnings as of January 1, 2013, if each of the following methods had been in use? Retained Earnings Initial value method $ Partial equity method $ Equity method $