Haynes, Inc., obtained 100 percent of Turner Companys common stock on January 1, 2014, by issuing 10,100 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 $108,900. However, its equipment (with a five-year remaining life) was undervalued by $5,600 in the companys accounting records. Also, Turner had developed a customer list with an assessed value of $37,000, 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		$	(629,000	)			$	(338,000	)
Expenses			454,000					182,000
Investment income			Not given					0
Dividends declared			90,000					70,000

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

	Haynes					Turner
Revenues		$	(821,000	)			$	(407,000	)
Expenses			479,400					221,800
Investment income			Not given					0
Dividends declared			100,000					60,000
Equipment			523,000					338,000

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?

d. Prepare entry *C for each of the following methods.

(1) Prepare entry *C if the parnet used the intital value method.

(2) Prepare entry *C if the parent used the partial equity method.