Foxx Corporation acquired all of Greenburg Companys outstanding stock on January 1, 2019, for $878,000 cash. Greenburgs accounting records showed net assets on that date of $662,000, although equipment with a 10-year remaining life was undervalued on the records by $130,500. Any recognized goodwill is considered to have an indefinite life.

Greenburg reports net income in 2019 of $103,500 and $139,500 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

1. Determine December 31, 2021, consolidated balance for each of the following accounts:

1. Determine parent's investment income for 2021 under partial equity method and equity method.

2. What would be Foxxs balance for retained earnings as of January 1, 2021, if each of the following methods had been in use?

Greenburg $ (928,000) 232,000 416,000 Revenues Cost of goods sold Depreciation expense Investment income Net income Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Current assets Investment in subsidiary Equipment (net) Buildings (net) Land Total assets Liabilities Common stock Retained earnings Total liabilities and equity Foxx $(1,000,000) 125,000 492,000 (20,000) $ (403,000) $(1,140,000) (403,000) 120,000 $(1,423,000) $ 305,000 878,000 972,000 802,000 794,000 $ 3,751,000 $(1,428,000) (900,000) (1,423,000) $(3,751,000) $ (280,000) $ (565,000) (280,000) 20,000 $ (825,000) $ 157,000 688,000 480,000 113,000 $ 1,438,000 $ (313,000) (300,000) (825,000) $(1,438,000) Consolidated Balances Depreciation expense Dividends declared Revenues Equipment Buildings Goodwill Common stock d. Investment Income e. Retained Earnings Initial value method Partial equity method Equity method