Haynes, Inc., obtained 100 percent of Turner Companys common stock on January 1, 2014, by issuing 10,200 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 $106,150. However, its equipment (with a five-year remaining life) was undervalued by $9,050 in the companys accounting records. Also, Turner had developed a customer list with an assessed value of $37,800, 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		$	(718,000	)			$	(332,000	)
Expenses			461,000					142,000
Investment income			Not given					0
Dividends declared			130,000					90,000

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

	Haynes					Turner
Revenues		$	(895,000	)			$	(387,000	)
Expenses			482,200					181,700
Investment income			Not given					0
Dividends declared			150,000					80,000
Equipment			554,000					351,000

a.

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

Investment in Turner Account

??????

b.

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

Consolidated net income

??????

c-1.

What is the consolidated equipment balance as of December 31, 2015?

Consolidated equipment

d.

Prepare entry *C for each of the following methods.

Date	Consolidating Entries	Debit	Credit
1 prepare entry*C if the parent used the initial value method	N/A	N/A	N/A
December 31, 2015	Investment in Turner	???????
	Retained earnings		???????

Date	Consolidating Entries	Debit	Credit
2 Prepear entery *C if the parent used the partial equity method	N/A	N/A	N/A
December 31, 2015	Retained Earnings	????????
	Investment in Turner		????????