Haynes, Inc., obtained 100 percent of Turner Companys common stock on January 1, 2020, by issuing 10,700 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 $114,800. However, its equipment (with a five-year remaining life) was undervalued by $8,800 in the companys accounting records. Also, Turner had developed a customer list with an assessed value of $39,600, although no value had been recorded in 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:

Revenue (660,000) (375,000)

Expenses 450,000 207,000

Investment income Not Given 0

Dividends Declared 110,000 80,000

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

Revenues (831,000) (440,000)

Expenses 477,600 242,500

Investment Income Not Given 0

Dividends Declared 120,000 60,000

Equipment 546,000 360,000

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?