Haynes, Inc., obtained 100 percent of Turner Companys common stock on January 1, 2014, by issuing 9,000 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 $100,000. However, its equipment (with a five-year remaining life) was undervalued by $5,000 in the companys accounting records. Also, Turner had developed a customer list with an assessed value of $30,000, 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		$	(600,000	)			$	(230,000	)
Expenses			440,000					120,000
Investment income			Not given					0
Dividends declared			80,000					50,000

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

	Haynes					Turner
Revenues		$	(700,000	)			$	(280,000	)
Expenses			460,000					150,000
Investment income			Not given					0
Dividends declared			90,000					40,000
Equipment			500,000					300,000

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 if the parent used the equity method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)