how to find retained earnings.. please help asap
Determining ending consolidated balances in the second year following the acquisition-Cost method Assume a parent company acquired a subsidiary on January 1, 2018, for $1,200,000. The purchase price was $650,000 in excess of the subsidiary's $550,000 book value of Stockholders' Equity on the acquisition date. Of this excess purchase price, $250,000 was assigned to Property, plant and equipment with a remaining economic useful life of 10 years, and $400,000 was assigned to Goodwill. On the acquisition date, the subsidiary reported retained earnings equal to $280,000. The parent uses the cost method of pre-consolidation Equity investment bookkeeping. The financial statements of the parent and its subsidiary for the year ended December 31, 2019, are as follows: Parent Subsidiary Parent Subsidiary Income statement Balance sheet Sales $5.000.000 $1.200.000 Assets Cost of goods sold (3.000.000) (700,000) Cash $800,000 $150,000 Gross profit 2,000,000 500.000 Accounts receivable 1.000.000 340.000 Equity income 40.000 Inventory 1.600.000 500,000 Operating expenses (1.500,000) (400,000) Equity investment 1.200,000 Net income $540,000 $100.000 Property, plant & equipment 3.000.000 900,000 Statement of retained earnings 57.600,000 51.890,000 BOY retained earnings 1.500.000 600.000 Liabilities and stockholders equity Net income 540.000 100.000 Accounts payable $700.000 $140.000 Dividends (200,000) (40,000) Accrued liabilities 900,000 220.000 Ending retained earnings $1.840.000 5660,000 Long-term liabilities 2.500.000 600.000 Common stock 500,000 120.000 APIC 1.160.000 150.000 Retained earnings 1.840.000 660.000 57.600,000 $1.890.000 $ At what amount will the following accounts appear on the consolidated financial statements? Do not use negative signs with any of your answers. a. Sales 6,200,000 b. Investment income $ 0 c. Operating expenses $ 1.925,000 d. Inventories $ 2.100.000 e Equity investment $ 0 f. Property, plant & equipment. net s 4.100.000 3. Goodwill $ 400.000 h. Common stock $ 500.000 Retained earnings s OX Check