i tried everything but retained earning is coming as incorrect. someone help me find out the correct retained earning asap. Thanks in advance!
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 5280,000. 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 Gross proid 2.000.000 500.000 Accountable Equity come 40.000 Inventory Operating 1.500.000 (400,000) Culty me Netcom 550.000 $100.000 Property in Statement of retained earnings DO 1.300.000 600.000 band schulden uity Nellore 540.000 100.000 payable Divide (200,000 40,000 Sabates des 30.000 300.000 Les Common APIC dans $800,000 $150.000 1,000,000 320,000 1.600.000 300,000 200 000 3.000.000 900.000 $7,600,000 $1.290.000 $700.000 5140,000 900.000 220.000 2.500.000 600.000 500,000 120.000 1.160,000 150,000 1.840,000 660,000 $7.600.000 $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 v b. Investment income 5 O Operating expenses $ 1,925,000 de Inventories 5 2,100,000 e quity investment 5 O Property, plant & equipment, net 4,100,000 18. Goodwill 5 400,000 he common stock 5 500,000 Retained earnings 5 2,220,000 X 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 $ 6200000 0 1925000 2100000 OV b. Investment income $ Operating expenses S Inventories e Equity investment $ Property, plant & equipment net & Goodwill 3 h common stock Retained earnings 4100000 400000 500000 1,840,000 3