Herbert, Inc, acquired all of Rambis Company's outstanding stock on January 1, 2020, for $600,000 in cash. Annual excess amortization of $13,900 results from this transaction. On the date of the takeover, Herbert reported retained earnings of $445,000, and Rambis reported a $251,000 balance. Herbert reported internal net income of $42,000 in 2020 and $56,100 in 2021 and declared $10,000 in dividends each year. Rambis reported net income of $24,200 in 2020 and $38,300 in 2021 and declared $5,000 in dividends each year. a. Assume that Herbert's internal net income figures above do not include any income from the subsidiary. - If the parent uses the equity method, what is the amount reponted as consolidated retained earnings on December 31,2021 ? - What would be the amount of consolidated retained earnings on December 31, 2021, if the parent had applied enther the initial value or partial equity method for internal accounting purposes? b. Under each of the following situations, what is the Investment in Rambis account balance on Herbert's books on January 1,2021 ? - The parent uses the equity method. - The parent uses the partial equity method - The parent uses the initial value method. c. Under each of the following situations, what is Entry C on a 2021 consolidation worksheet? - The parent uses the equity method. - The parent uses the partial equity method. - The parent uses the initial value method. Complete this question by entering your answers in the tabs below. Assume that Herbert's internal net income figures above do not include any income from the subsidiary. If the parent uses the equity method, what is the amount reported as consolidated retained earnings on December What would be the amount of consolidated retained earnings on December 31,2021 , if the parent had applied eith initial value or partial equity method for internal accounting purposes? Under each of the following situations, what is the Investment in Rambis account balanc 2021? The parent uses the equity method. The parent uses the partial equity method. The parent uses the initial value method. inder each of the following situations, what is Entry C on a 2021 consolidation worksheet? (If no entry is required for a ransaction/event, select "No journal entry required" in the first account field.) he parent uses the equity method. he parent uses the partial equity method. the parent uses the initial value method. Consolidation Worksheet Entries 3 Prepare entry C if the parent used the equity method
