Haynes, Inc., obtained 100 percent of Turner Companys common stock on January 1, 2014, by issuing 8,800 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 $86,450. However, its equipment (with a five-year remaining life) was undervalued by $7,350 in the companys accounting records. Also, Turner had developed a customer list with an assessed value of $38,200, 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		$	(712,000	)			$	(420,000	)
Expenses			522,000					217,000
Investment income			Not given					0
Dividends declared			100,000					100,000

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

	Haynes					Turner
Revenues		$	(892,000	)			$	(478,500	)
Expenses			550,800					251,300
Investment income			Not given					0
Dividends declared			120,000					80,000
Equipment			548,000					357,000

a. What balance does Hayness Investment in Turner account show on December 31, 2015, when the equity method is applied?

Investment in Turner Account: $371,620 *CORRECT*

b. What is the consolidated net income for the year ending December 31, 2015?

Consolidated net income: $563,110 *CORRECT*

c-1. What is the consolidated equipment balance as of December 31, 2015?

Consolidated equipment: $909,410 *CORRECT*

c-2. Would this answer be affected by the investment method applied by the parent?

Answer: No *CORRECT*

d. Prepare entry *C for each of the following methods. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Part (1): Prepare entry *C if the parent used the inital value method

Investment in Turner	NEED ANSWER
Retained Earnings		NEED ANSWER

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

Retained Earnings	NEED ANSWER
Investment in Turner		NEED ANSWER