Haynes, Inc, obtained 100 percent of Turner Company's common stock on January 1, 2020, by Issuing 10,200 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 $106,150. However, its equipment (with a five-year remaining life) was undervalued by $9.050 in the company's accounting records. Also, Turner had developed a customer list with an assessed value of $37.800, 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, 2020: Revenues Expenses Investment income Dividends declared Haynes Turner $ (718,000) $(332,000) 461,000 142,000 Not given 130, cee 90, eee The following balances come from the individual accounting records of these two companies as of December 31, 2021 Revenues Expenses Investment income Dividends declared Equipment Haynes Turner $ (895,000) $(287,000) 482,200 181,700 Not given e 150, eee 80,000 554, eee 351,00 a. What balance does Haynes's Investment in Turner account show on December 31, 2021, when the equity method is applied? b. What is the consolidated net income for the year ending December 31, 2021? C-1. What is the consolidated equipment balance as of December 31, 2021? c-2. Would this answer be affected by the investment method applied by the parent? d. Prepare entry for the beginning of the Retained Earnings account on a December 31, 2021 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, 2021, when the equity method is applied b. What is the consolidated net income for the year ending December 31, 20217 c-1. What is the consolidated equipment balance as of December 31, 2021? c-2. Would this answer be affected by the investment method applied by the parent? Show less a Investment in Turner account b. Consolidated net income C-1. Consolidated equipment 16.2. Would this answer be affected by the investment method applied by the parent? Haynes, Inc. obtained 100 percent of Tumer Company's common stock on January 1, 2020, by issuing 10,200 shares of S10 par value common stock, Haynes's shares had a $15 per share fair value. On that date, Turner reported a net book value of $106.150. However, its equipment with a five-year remaining life) was undervalued by $9.050 in the company's accounting records. Also, Tumer had developed a customer list with an assessed Value of $37,800, 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 st of December 31, 2020 Haynes Turner 018,ee) 3(392.000> Expenses 461.000 142, Investment income Nat given Dividends declared 110,000 90, see Revenues The following balances come from the individual accounting records of these two componies as of December 31, 2021 Turner Revues Expenses Investment incon Dividends declared Equipment Haynes (895, ee) 56887.000) 452,200 181,700 Not given 150.ee 82.ee 554.000 351.000 a. What balance does Haynes's Investment in Tumer account show on December 31, 2021 when the equity method is applied? b. What is the consolidated net income for the year ending December 31, 2021? 1. What is the consolidated equipment balance as of December 31, 2021? c-2. Would this answer be affected by the investment method applied by the parent? d. Prepare entry "C for the beginning of the Retoined Earnings account on December 31, 2021 by using initial value, partial equity and equity method. Complete this question by entering your answers in the tabs below. Red A to C2 Red D Prepare entry for the beginning of the Retained Earnings account on a December 31, 2021 by using initial value partial equity and equity method. nuty is required for a transaction/event, seled No joutantry read the first account field. View transactions transactions No Accounts Dabit Data December 31 2021 Creat Investent in Turner Rettined eatings 2 December 31 2021 Retained things Investment in Turner December 31, 2021 No journal entry required
