Haynes, Inc., obtained 100 percent of Turner Companys common stock on January 1, 2020, by issuing 11,800 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 $133,850. However, its equipment (with a five-year remaining life) was undervalued by $5,650 in the companys accounting records. Also, Turner had developed a customer list with an assessed value of $37,500, 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	$	(716,000	)	$	(324,000	)
Expenses		458,000			132,000
Investment income		Not given			0
Dividends declared		130,000			90,000

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

	Haynes			Turner
Revenues	$	(906,000	)	$	(393,250	)
Expenses		485,800			168,800
Investment income		Not given			0
Dividends declared		150,000			70,000
Equipment		573,000			322,000

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.

a. Investment in Turner account b. C-1. Consolidated net income Consolidated equipment Would this answer be affected by the investment method applied by the parent? C-2. No No Date Accounts Debit Credit 1 December 31, 2021 Investment in Turner Retained earnings 2 December 31, 2021 Retained earnings Investment in Turner 3 December 31, 2021 No journal entry required a. Investment in Turner account b. C-1. Consolidated net income Consolidated equipment Would this answer be affected by the investment method applied by the parent? C-2. No No Date Accounts Debit Credit 1 December 31, 2021 Investment in Turner Retained earnings 2 December 31, 2021 Retained earnings Investment in Turner 3 December 31, 2021 No journal entry required