har dudeFar's retained earnings were 300.000. All of Falsts and liabilities and fair values equal to crying Janary 1, Year 4. Cyrus Inc. paid $25.000 in cash to scale of the dinary stures of Company. On for an investment in bonds, which was $12 e han crying and will Dvember Year 8. The recoverable amount for codwill was $220,000 the end of Years and 5 and declared no dividends. In Year 4. Fazli reported net income of sad paid a 50,000 cash dividend. Cyrus In Year 4. Cyrus reported net income from its own personave of income from out of $125.000 w the cost method to report its investment in Parland we the effective interest method toate premium or discounts on investment in bonds. The amortization of the son differential pertaining to the investment in bonds was $2.251 in Year 4 and 52.468 in Year 5. The financial statements for Cyrus and Falls for the year ended December 31. Year 5. were as follow in What is Cyrus's January 1, Year 5 retained earnings account balance on its separate entity financial statements Cotion SA Problem 5-8 LO2. 3,5 Cyr SOLO 674000 SO 34 719,00 $100 STRO 114D 254.000 (1040 3. 3 $342.00 Revenues and investment income Expenses Profit Retained carvings 1/1/Year 5 Profit Dividends paid Retained earnings, 12/31/Years Equipment (net Investment in Pade Investment in bonds Receivables and inventory Cach Total assets Ordinary shares Retained earnings Liabilities Total equities and liabilities 914,000 SOLO DO 152.000 SU 20000 $14.000 54000 52.136.000 5 55.000 964 CO 614,000 52.1.000 342.000 000 SI 25000 Required (a) Prepare a schedule of changes to the acquisition differential for Years 4 and 5 (b) Calculate investment in bonds and goodwill for the consolidated balance sheet at the end of Year 5. (c) Calculate investment income from Fazli and investment in Fazli account balances for Cyrus's separate entity financial statements for Year 5, assuming Cyrus uses the 0) Cost method (1) Equity method (d) How does the parent's method of accounting for its investment in Farli affect the amount reported for expenses in its December 31. Year 5. consolidated income statement? (e) How does the parent's method of accounting for its lavestment in Fazli affect the amount reported for investment in bonds in its December 31. Year 5. consolidated birlance sheet? 287 assuming Cyrus accounts for its investment in Fall using the (1) cost method (1) equity method? har dudeFar's retained earnings were 300.000. All of Falsts and liabilities and fair values equal to crying Janary 1, Year 4. Cyrus Inc. paid $25.000 in cash to scale of the dinary stures of Company. On for an investment in bonds, which was $12 e han crying and will Dvember Year 8. The recoverable amount for codwill was $220,000 the end of Years and 5 and declared no dividends. In Year 4. Fazli reported net income of sad paid a 50,000 cash dividend. Cyrus In Year 4. Cyrus reported net income from its own personave of income from out of $125.000 w the cost method to report its investment in Parland we the effective interest method toate premium or discounts on investment in bonds. The amortization of the son differential pertaining to the investment in bonds was $2.251 in Year 4 and 52.468 in Year 5. The financial statements for Cyrus and Falls for the year ended December 31. Year 5. were as follow in What is Cyrus's January 1, Year 5 retained earnings account balance on its separate entity financial statements Cotion SA Problem 5-8 LO2. 3,5 Cyr SOLO 674000 SO 34 719,00 $100 STRO 114D 254.000 (1040 3. 3 $342.00 Revenues and investment income Expenses Profit Retained carvings 1/1/Year 5 Profit Dividends paid Retained earnings, 12/31/Years Equipment (net Investment in Pade Investment in bonds Receivables and inventory Cach Total assets Ordinary shares Retained earnings Liabilities Total equities and liabilities 914,000 SOLO DO 152.000 SU 20000 $14.000 54000 52.136.000 5 55.000 964 CO 614,000 52.1.000 342.000 000 SI 25000 Required (a) Prepare a schedule of changes to the acquisition differential for Years 4 and 5 (b) Calculate investment in bonds and goodwill for the consolidated balance sheet at the end of Year 5. (c) Calculate investment income from Fazli and investment in Fazli account balances for Cyrus's separate entity financial statements for Year 5, assuming Cyrus uses the 0) Cost method (1) Equity method (d) How does the parent's method of accounting for its investment in Farli affect the amount reported for expenses in its December 31. Year 5. consolidated income statement? (e) How does the parent's method of accounting for its lavestment in Fazli affect the amount reported for investment in bonds in its December 31. Year 5. consolidated birlance sheet? 287 assuming Cyrus accounts for its investment in Fall using the (1) cost method (1) equity method