Haynes, Inc., obtained 100 percent of Turner Company's common stock on January 1, 2017, by issuing 8,300 shares of $10 par value common stock. Haynes's shares had a $15 per share fair value. On that date, Turner reported a net book value of $83,850. However, its equipment (with a five-year remaining life) was undervalued by $6,850 in the company's accounting records. Also, Turner had developed a customer list with an assessed value of $33,800, although no value had been recorded on Turner's books. The customer list had an estimated remaining useful life of 10 years. The following balances come from the individual accounting records of these two companies as of December 31, 2017: 5 Revenues Expenses Investment Income Dividends declared Haynes (757,000) 508,000 Not given 120,000 Turner $(344,000) 148,000 90,000 The following balances come from the individual accounting records of these two companies as of December 31, 2018. 5 Revenues Expenses Investment income Dividends declared Equipment Haynes (927.000) 532,400 Not given 130.000 565,000 Turner (417.500) 185,900 80,000 380.000 a. What balance does Haynes's Investment in Turner account show on December 31, 2018, when the equity method is applied? b. What is the consolidated net income for the year ending December 31, 2018? -1. What is the consolidated equipment balance as of December 31, 2018? c-2. Would this answer be affected by the investment method applied by the parent? d. Prepare entry "C for the beginning of the Retained Earnings account on a December 31, 2018 by using initial value, partial equity and equity method. Complete this question by entering your answers in the tabs below. Reg A to C2 RegD Prepare entry "C for the beginning of the Retained Earnings account on a December 31, 2018 by using initial value, partial equity and equilty method. (If no entry is required for a transaction/event, select "No journal entry required in the first account field) Saved Dividends declared Equipment 130,000 565,000 80,000 380,000 a. What balance does Haynes's Investment in Turner account show on December 31, 2018, when the equity method is applied? b. What is the consolidated net income for the year ending December 31, 2018? C-1. What is the consolidated equipment balance as of December 31, 2018? c-2 Would this answer be affected by the investment method applied by the parent? d. Prepare entry "C for the beginning of the Retained Earnings account on a December 31, 2018 by using initial value, partial equity and equity method. Complete this question by entering your answers in the tabs below. Reg A to C2 Reg D a. What balance does Haynes's Investment in Turner account show on December 31, 2018, when the equity method is applied? b. What is the consolidated net income for the year ending December 31, 2018? c-1. What is the consolidated equipment balance as of December 31, 2018? c-2. Would this answer be affected by the investment method applied by the parent? Show less a b. 01 02 Investment in Turner account Consolidated net income Consolidated equipment Would this answer be affected by the investment method applied by the parent? $ 372 600 Reg A to Z ReqD> Complete this question by entering your answers in the tabs below. Reg A to C2 Reg D Prepare entry "C for the beginning of the Retained Earnings account on a December 31, 2018 by using initial value, partial equity and equity method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries Prepare entry "Cif the parent used the initial value method. Note: Enter debits before credits Date December 31, 2018 Debit Credit Record entry Clear entry view consolidation entries ( Req Ato C2
