Haynes, Inc., obtained 100 percent of Turner Companys common stock on January 1, 2014, by issuing 11,300 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 $126,000. However, its equipment (with a five-year remaining life) was undervalued by $8,200 in the companys accounting records. Also, Turner had developed a customer list with an assessed value of $35,300, although no value had been recorded on Turners books. The customer list had an estimated remaining useful life of 10 years.

The following figures come from the individual accounting records of these two companies as of December 31, 2014:

	Haynes	Turner
Revenues		$	(648,000	)			$	(360,000	)
Expenses			486,000					173,000
Investment income			Not given					0
Dividends declared			80,000					90,000

The following figures come from the individual accounting records of these two companies as of December 31, 2015:

	Haynes	Turner
Revenues		$	(845,000	)			$	(412,750	)
Expenses			515,800					207,200
Investment income			Not given					0
Dividends declared			90,000					80,000
Equipment			512,000					367,000

a.	What balance does Hayness Investment in Turner account show on December 31, 2015, when the equity method is applied?

b.	What is the consolidated net income for the year ending December 31, 2015?

c-1.	What is the consolidated equipment balance as of December 31, 2015?

c-2.	Would this answer be affected by the investment method applied by the parent?
	Yes No

d.	Prepare entry *C for each of the following methods. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)