Haynes, Inc., obtained 100 percent of Turner Companys common stock on January 1, 2020, by issuing 8,400 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 $78,850. However, its equipment (with a five-year remaining life) was undervalued by $9,450 in the companys accounting records. Also, Turner had developed a customer list with an assessed value of $37,700, 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, 2020:

	Haynes			Turner
Revenues	$	(664,000	)	$	(336,000	)
Expenses		452,000			128,000
Investment income		Not given			0
Dividends declared		110,000			100,000

The following balances come from the individual accounting records of these two companies as of December 31, 2021:

	Haynes			Turner
Revenues	$	(779,000	)	$	(392,250	)
Expenses		474,600			160,900
Investment income		Not given			0
Dividends declared		120,000			80,000
Equipment		592,000			332,000

1. a. What balance does Hayness Investment in Turner account show on December 31, 2021, when the equity method is applied?

2. b. What is the consolidated net income for the year ending December 31, 2021?

3. c-1. What is the consolidated equipment balance as of December 31, 2021?

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

5. d. Prepare entry *C for the beginning of the Retained Earnings account on a December 31, 2021 by using initial value, partial equity and equity method.