Foxx Corporation acquired all of Greenburg Company's outstanding stock on January 1, 2016, for $724,000 cash. Greenburg's accounting records showed nel assels on that dale of $560,000, alhough equipment with a 10-year life was undervalued on the records by $87,500. Any recognized goodwill is considered to have an indefinite ife. Greenburg reports net income in 2016 of $108,500 and $121,000 in 2017. The subsidiary declared dividends of $20,000 in each of these two years. Account balancs tor the ycar ending December 31, 2018, follow. Credit balances are indicated by parentheses. Greenburg 5996, D00)804,D0O) Revenues Cost of goods sold Deprecition expense 124,500 201, D00 366, D00 359, D00 Inveetment incone [20,000) 5 (525,500) 5 (244,D0O) Net income $i1,236, 000 (525, 500) 5 (328, 000) (244, D00) Net income Dividende declared 120, 000 20, 000 $ (1,641,500) 5 (552, 000) Retained earninge, 12/31/18 $ 391,000 $ 104, D00 Current a3sets Investment in subsidiary Equipment (net) Buildings (net) 724, 000 906, 000 602, 000 552, D00 976, 000 Land 10,000 112, D00 $ 3, 687, 000 $ 1, 400, 000 Total aseets Liabilities $1,14S.500) (900, 000) 1, 641, 500) 5 (548,000) (300, D00) (552, D00) Retained earnings (1, 400, D00) Total liabilitias and equity $(3, 687, 000) a. Determine the December 31, 2018, consolidated balance for each of the following accounts: Depreciation Expenee Dividends Declared Buildinge Goodwi11 Common Stock Revenues Equipment 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 accouriting for this subsidiary is the parent actually using for internal reporting purposes? d. Determine parent's investment income for 2018 under partial equity method and equity method e. What would be Foxx's balance for relained earnings as of January 1. 2018, if each of the following melhods had been in use? . Initial value method Partial equity method Equity method Determine the December 31, 2018, oonsolidated balance for each of the following accounts: onsoli Balances Depreciat on expensie Dividends declared Revenues Equipment Buildings Goocwil Common stock 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 Retained Earnings Initial value method Part al equity method Equity method Foxx Corporation acquired all of Greenburg Company's outstanding stock on January 1, 2016, for $724,000 cash. Greenburg's accounting records showed nel assels on that dale of $560,000, alhough equipment with a 10-year life was undervalued on the records by $87,500. Any recognized goodwill is considered to have an indefinite ife. Greenburg reports net income in 2016 of $108,500 and $121,000 in 2017. The subsidiary declared dividends of $20,000 in each of these two years. Account balancs tor the ycar ending December 31, 2018, follow. Credit balances are indicated by parentheses. Greenburg 5996, D00)804,D0O) Revenues Cost of goods sold Deprecition expense 124,500 201, D00 366, D00 359, D00 Inveetment incone [20,000) 5 (525,500) 5 (244,D0O) Net income $i1,236, 000 (525, 500) 5 (328, 000) (244, D00) Net income Dividende declared 120, 000 20, 000 $ (1,641,500) 5 (552, 000) Retained earninge, 12/31/18 $ 391,000 $ 104, D00 Current a3sets Investment in subsidiary Equipment (net) Buildings (net) 724, 000 906, 000 602, 000 552, D00 976, 000 Land 10,000 112, D00 $ 3, 687, 000 $ 1, 400, 000 Total aseets Liabilities $1,14S.500) (900, 000) 1, 641, 500) 5 (548,000) (300, D00) (552, D00) Retained earnings (1, 400, D00) Total liabilitias and equity $(3, 687, 000) a. Determine the December 31, 2018, consolidated balance for each of the following accounts: Depreciation Expenee Dividends Declared Buildinge Goodwi11 Common Stock Revenues Equipment 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 accouriting for this subsidiary is the parent actually using for internal reporting purposes? d. Determine parent's investment income for 2018 under partial equity method and equity method e. What would be Foxx's balance for relained earnings as of January 1. 2018, if each of the following melhods had been in use? . Initial value method Partial equity method Equity method Determine the December 31, 2018, oonsolidated balance for each of the following accounts: onsoli Balances Depreciat on expensie Dividends declared Revenues Equipment Buildings Goocwil Common stock 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 Retained Earnings Initial value method Part al equity method Equity method