help asap

On January 1, two years ago, Parkway Corporation purchased all of the outstanding common stock of Shaw Company for $220,000 cash. On that date, Shaw's net assets had a book value of $148,000. Equipment with an 8-year life was undervalued by $20,000 in Shaw's financial records. Shaw has a database that is valued at $52,000 and will be amortized over ten years. Shaw reported net income of $25,000 in the year of acquisition and $32,500 in the following year. Dividends of $2,500 were declared and paid in each of those two years. The third year of operations is now complete. For each of the two companies, selected account balances as of December 31 for this third year are as follows: Multiple Choice Revenues Expenses Equipment (net) Retained Earnings, beginning of the year Dividend Paid What is consolidated retained earnings at January 1 of the third year if the parent company uses the equity mthod? C Parkway $ 250,000 175,000 125,000 150,000 25,000 $150,000 Shaw $ 142,500 100,000 60,000 75,500 5,000

On January 1, two years ago, Parkway Corporation purchased all of the outstanding common stock of Shaw Company for $220,000 cash. On that date, Shaw's net assets had a book value of $148,000. Equipment with an 8 year life was undervalued by $20,000 in Shaw's financial records. Shaw has a database that is valued at. $52.000 and wil be amortized over ten years. Shaw reported net income of $25,000 in the year of acquisition and $32.500 in the foliowing year, Dividends of $2.500 were declared and paid in each of those two years. The third year of operations is now complete. For each of the two companies, selected account balances as of December 31 tor this third yeat are as follows: What is corisobidated relained earnings at January 1 of the third year if the parent company uses the equity mothod? Muteple Crvoice $1500000