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Foxx Corporation acquired all of Greenburg Company's outstanding stock on January 1, 2016, for $640,000 cash. Greenburg's accounting records showed net assets on that date

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Foxx Corporation acquired all of Greenburg Company's outstanding stock on January 1, 2016, for $640,000 cash. Greenburg's accounting records showed net assets on that date of 5465,000 although equipment with a 10-year Ife was undervalued on the records by 586,500. Any recognized goodwill is considered to have an indefinite life Greenburg reports net income in 2016 of $130,500 and $126,000 in 2017. The subsidiary declared dividends of $20,000 in each of these two years Account balances for the year ending December 31, 2018, follow. Credit balances are indicated by parentheses $ Greenburg (764 000) 191.000 443 000 $ $ Cost of goods sold Depreciation expense Investment income Net income Retained earnings, 1/1/18 Net income Dividends declared Retained eamings 12/31/18 Current assets Investment in subsidiary Equipment (net) Buildings (net) Land Total assets Latities Common stock Retained earnings Total abilities and equity 1948 000) 118 500 312 000 (20,000) $ (537,500) (1.198 000) (537 500) 120.000 $ (1615 500) 300 000 640 000 966000 928000 686 000 $ 3,560,000 5000) 1900 0001 (1.615 500 $ 0.560000) (130,000) (381,500) (130,000) 20 000 (491,500) 127.000 $ $ S 634 000 580 000 105 000 $ 1446.000 4 .500) 000 000) (491500) $(1.446.000) Reg A Req B and C Reg D and E Determine the December 31, 2018, consolidated balance for each of the following accounts: Consolidated Balances Depreciation expense Dividends declared Revenues Equipment Buildings Goodwill Common stock Reg A Req B and C Reg D and E d. Determine parent's investment income for 2018 under partial equity method and equity method. e. What would be Foxx's balance for retained earnings as of January 1, 2018, if each of the following methods had been in use? Investment Income Retained Earnings Initial value method Partial equity method Equity method Foxx Corporation acquired all of Greenburg Company's outstanding stock on January 1, 2016, for $640,000 cash. Greenburg's accounting records showed net assets on that date of 5465,000 although equipment with a 10-year Ife was undervalued on the records by 586,500. Any recognized goodwill is considered to have an indefinite life Greenburg reports net income in 2016 of $130,500 and $126,000 in 2017. The subsidiary declared dividends of $20,000 in each of these two years Account balances for the year ending December 31, 2018, follow. Credit balances are indicated by parentheses $ Greenburg (764 000) 191.000 443 000 $ $ Cost of goods sold Depreciation expense Investment income Net income Retained earnings, 1/1/18 Net income Dividends declared Retained eamings 12/31/18 Current assets Investment in subsidiary Equipment (net) Buildings (net) Land Total assets Latities Common stock Retained earnings Total abilities and equity 1948 000) 118 500 312 000 (20,000) $ (537,500) (1.198 000) (537 500) 120.000 $ (1615 500) 300 000 640 000 966000 928000 686 000 $ 3,560,000 5000) 1900 0001 (1.615 500 $ 0.560000) (130,000) (381,500) (130,000) 20 000 (491,500) 127.000 $ $ S 634 000 580 000 105 000 $ 1446.000 4 .500) 000 000) (491500) $(1.446.000) Reg A Req B and C Reg D and E Determine the December 31, 2018, consolidated balance for each of the following accounts: Consolidated Balances Depreciation expense Dividends declared Revenues Equipment Buildings Goodwill Common stock Reg A Req B and C Reg D and E d. Determine parent's investment income for 2018 under partial equity method and equity method. e. What would be Foxx's balance for retained earnings as of January 1, 2018, if each of the following methods had been in use? Investment Income Retained Earnings Initial value method Partial equity method Equity method

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