Haynes, Inc., obtained 100 percent of Turner Companys common stock on January 1, 2017, by issuing 9,000 shares of $10 par value common stock. Hayness shares had a $15 per share fair value. On that date, Turner reported a net book value of $100,000. However, its equipment (with a five-year remaining life) was undervalued by $5,000 in the companys accounting records. Also, Turner had developed a customer list with an assessed value of $30,000, although no value had been recorded on Turners 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:

	Haynes			Turner
Revenues	$	(600,000	)	$	(230,000	)
Expenses		440,000			120,000
Investment income		Not given			0
Dividends declared		80,000			50,000

The following balances come from the individual accounting records of these two companies as of December 31, 2018:

	Haynes			Turner
Revenues	$	(700,000	)	$	(280,000	)
Expenses		460,000			150,000
Investment income		Not given			0
Dividends declared		90,000			40,000
Equipment		500,000			300,000

1. c-1. What is the consolidated equipment balance as of December 31, 2018?

2. c-2. Would this answer be affected by the investment method applied by the parent?

3. 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.