Foxx Corporation acquired all of Greenburg Company's outstanding stock on January 1, 2019, for $743,000 cash. Greenburg's accounting records showed net assets on that date of $609,000, although equipment with a 10-year remaining life was undervalued on the records by $59,500. Any recognized goodwill is considered to have an indefinite life. Greenburg reports net income in 2019 of $125,000 and $127,500 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 $ (920,000) 230,000 425,000 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 Foxx $(1,184,000) 148,000 392,000 (20,000) $ (664,000) $(1,140,000) (664,000) 120,000 $(1,684,000) $ 328,000 743,000 1,022,000 844,000 652,000 $ 3,589,000 $(1,005, 000) (900,000) $ (265,000) $ (521,500) (265,000) 20,000 $ (766,500) $ 152,000 0 798,000 418,000 161,000 $ 1,529,000 $ (462,500) (300,000) Foxx $(1,184,000) 148,000 392,000 (20,000) $ (664,000) $(1,140,000) Greenburg $ (920,000) 230,000 425,000 $ $ (664,000) 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 (265,000) (521,500) (265,000) 20,000 (766,500) 152,000 $ $ 120,000 $(1,684,000) $ 328,000 743,000 1,022,000 844,000 652,000 $ 3,589,000 $(1,005,000) (900,000) (1,684,000) $ (3,589,000) 798,000 418,000 161,000 $ 1,529,000 $ (462,500) (300,000) (766,500) $(1,529,000) Reg A Reg Band 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 e. Retained Earnings $ 524,050 X Initial value method Partial equity method Equity method $ 265,000 259,050 $ Depreciation expense Dividends declared Revenues Equipment Buildings Goodwill Consolidated Balances $ 6,374,150 X $ 120,000 $ 2,104,000 1,913,650 X $ 1,262,000 $ 74,500 $ 900,000 $ Common stock