Foxx Corporation acquired all of Greenburg Companys outstanding stock on January 1, 2019, for $658,000 cash. Greenburgs accounting records showed net assets on that date of $502,000, although equipment with a 10-year remaining life was undervalued on the records by $88,000. Any recognized goodwill is considered to have an indefinite life.

Greenburg reports net income in 2019 of $102,500 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.

FOXX $ Foxx Corporation acquired all of Greenburg Company's outstanding stock on January 1, 2019, for $658,000 cash. Greenburg's accounting records showed net assets on that date of $502,000, although equipment with a 10-year remaining life was undervalued on the records by $88,000. Any recognized goodwill is considered to have an indefinite life. Greenburg reports net income in 2019 of $102,500 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. Greenburg Revenues $ (872,000) $ (840, 800) Cost of goods sold 109,000 210,000 Depreciation expense 342,800 448,888 Investment income (20,000) Net income $ (441,600) (182,880) Retained earnings, 1/1/21 $(1,152,000) $ (484,880) Net income (441,880) (182,880) Dividends declared 120,000 20,880 Retained earnings, 12/31/21 $(1,473,000) $ (566,880) Current assets $ 335,000 $ 165,000 Investment in subsidiary 658,600 Equipment (net) 1,044,000 646, 080 Buildings (net) 984,800 434,000 Land 690,000 178,888 Total assets $ 3,711,000 $ 1,415,000 Liabilities $(1,338,000) $ (549,880) Common stock (900,000) (380,000) Retained earnings (1,473,000) (566,808) Total liabilities and equity $(3,711,000) $(1,415,000) a. Determine the December 31, 2021, 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 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? 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 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 Reg A Req B and C Reg 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. Olt affects the consolidated totals Olt affects the internal reporting of the parent, but not the consolidated totals Olt doesn't have any affect c. 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 Reg D and E 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