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Haynes, Inc., obtained 100 percent of Turner Companys common stock on January 1, 2014, by issuing 8,500 shares of $10 par value common stock. Hayness

Haynes, Inc., obtained 100 percent of Turner Companys common stock on January 1, 2014, by issuing 8,500 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 $88,750. However, its equipment (with a five-year remaining life) was undervalued by $7,250 in the companys accounting records. Also, Turner had developed a customer list with an assessed value of $31,500, 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 $ (692,000 ) $ (275,000 )
Expenses 449,000 130,000
Investment income Not given 0
Dividends declared 120,000 70,000

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

Haynes Turner
Revenues $ (886,000 ) $ (348,750 )
Expenses 471,200 163,100
Investment income Not given 0
Dividends declared 140,000 50,000
Equipment 532,000 373,000

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?

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