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Foxx Corporation acqulred all of Greenburg Company's outstanding stock on January 1 , 2 0 2 2 for $ 5 8 6 , 0 0
Foxx Corporation acqulred all of Greenburg Company's outstanding stock on January for $ cash. Greenburg's
accounting records showed net assets on that date of $ although equlpment with a year remalning life was undervalued
on the records by $
Greenburg reports net income in of $ and $ in The subsidlary declared dividends of $ in each of
these two years.
Account balances for the year ending December follow. Credit balances are Indicated by parentheses.
Required:
a Determine the December consolidated balance for each of the following accounts:
Depreclatlon Expense
Dividends Declared
Revenues
Equipment
Bulldings
Goodwill
Common Stock
b How does the parent's choice of an accounting method for its investment affect the balances computed in requlrement part a
c Which method of accounting for this subsidiary is the parent actually using for Internal reporting purposes?
d What would be Investment Income if each of the following methods had been In use?
e What would be Foxx's balance for retalned earnings as of January value method.
Partlal equity method.
Equity method.
Complete this question by entering your answers in the tabs below.
Determine the December consolidated balance for each of the following accounts.
Note: Input all amount as positive values.
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