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Hi, I need a little help with the following. Thank you in advance! On January 1, 2015, Pueblo Corporation purchased all of Spartan Companys outstanding

Hi, I need a little help with the following. Thank you in advance!

On January 1, 2015, Pueblo Corporation purchased all of Spartan Companys outstanding stock for $1,200,000 cash. On that date, Spartans accounting records showed net assets of $940,000, even though equipment, with a life of 10 years, was undervalued on the books by $180,000. The life of recognized goodwill is considered to be indefinite. Spartan reported $180,000 net income in 2015 and $200,000 in 2016. The subsidiary paid dividends of $40,000 for each year. Financial figures are shown in Table 1 below for the year ending December 31, 2017. Credit balances are indicated in parentheses.
Table 1: Financial Figures for Year Ending December 31, 2017
Account Pueblo Spartan
Revenues $(1,600,000) $(1,200,000)
Cost of goods sold $200,000 $300,000
Depreciation expense $600,000 $700,000
Investment income $(40,000) $-
Net income $(840,000) $(200,000)
Dividends paid $240,000 $40,000
Retained earnings, December 31, 2017 $(2,800,000) $(800,000)
Current assets $600,000 $200,000
Investment in subsidiary $1,200,000 $-
Equipment (net) $1,800,000 $1,200,000
Buildings (net) $1,600,000 $800,000
Land $1,200,000 $200,000
Total assets $6,400,000 $2,400,000
Liabilities $(1,800,000) $(1,000,000)
Common stock $(1,800,000) $(600,000)
Retained earnings $(2,800,000) $(800,000)
Total liabilities and equity $(6,400,000) $(2,400,000)
Answer Questions 15 below.
1. Determine consolidated balances, as of December 31, 2017, of the accounts listed below.
Account Balance
Depreciation expense
Dividends paid
Revenues
Equipment
Buildings
Goodwill
Common stock
2. How does the accounting method chosen by the parent company for its investment affect the consolidated balances computed for the accounts listed in question 1?
(Use this cell for your answer to question 2.)
3. Which accounting method for Spartan is Pueblo using for internal reporting?
(Use this cell for your answer to question 3.)
4. If Pueblo had used a different accounting method for this particular investment, how could you identify the method used?
(Use this cell for your answer to question 4.)
5. For each of the accounting methods listed below, determine Pueblos retained earnings balance as of January 1, 2017.
Method Balance
Initial value method
Partial equity method
Equity method
End of Worksheet

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