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Foxx Corporation acquired all of Greenburg Company's outstanding stock on January 1, 2019, for $535,000 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, 2019, for $535,000 cash Greenburg's accounting records showed net assets on that date of $389,000, although equipment with a 10 year remaining life was undervalued on the records by $90,000. Any recognized goodwill is considered to have an indefinite life. Greenburg reports net income in 2019 of $114,500 and $123,500 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 balance Greenburg $ (640,000) 160,000 412,90 Foxx $(1,180,000) 147, 500 496,290 (20,000) $ (556,500) $(1,156,000) (556,500) 120,000 $(1,592,500) $ (68,290) $ (287, eee) (68,000) 20, eee $ (335, 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 $ 174, eee $ 327,000 535, een 1,079,00 834,000 738, eee $ 3, 584,000 $(1,811,500) (900,000) (1,592,500) 5(3,504,690) 756, eee 578,899 183, eee $ 1,691, ese $ (1,056, 008) (300,000) (335, eee) $1,691,880) 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

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