On January $1,2022,$ an investor acquired $100\%$ of the voting common stock of an investee on January $1,2015$ in a transaction.

As a result of the acquisition, the investor recognized no goodwill and no bargain purchase gain in the post$-$acquisition consolidated financial statements

The acquisition date fair value of the property and equipment was $$57,600$ more than its carrying amount.

For all other assets and liablilities, the pre$-$acquistion amounts reported on the investee's balance sheet were equal to

their respective fair values. The purchaser believes the property and equipment will have an additional $10$ years of useful life

The investor uses the equity method to account for its pre$-$consolidation investment in the investee.

In addition, there are no intercompany transactions between the investor and investee.$$

$$The following summarized pre$-$consolidation financial statement information is for the year ending December $31,2022$:

Income Statement: Investor Investee

Revenues $1,339,200184,320$

Income from Investee $84,960$

Expenses $(1,080,000)(93,600)$

Net Income $$344,160$ $$90,720$

Retained Earnings Statement: Investor Investee

Retained earnings, January $1432,00021,600$

Net Income $344,16090,720$

Dividends declared $(36,000)(21,600)$

Retained earnings, December $31$ $$740,160$ $$90,720$

Balance Sheet Investor Investee

Investment in Investee $169,920-$

All other assets $2,759,040230,400$

Total assets $$2,928,960$ $$230,400$

Liaiblities $1,728,00089,280$

Common Stock & APIC $460,80050,400$

Retained Earnings $740,16090,720$

Total liabilities and equity $$2,928,960$ $$230,400$

$1.$ Prepare the "Allocation schedule", as we have discussed$/$done in class for the purchase of the investee on the acquisition date. Worth $5$ points

$2.$ Prepare the T Accounts for the "Investment in Investee" account, showing how the parent arrived at their balance of $$169,920$ as of December $31,2022.$ Identify all debits and credits in T account. Worth $5$ points

$3.$ Prepare the T Accounts for the "Income from Investee" account, showing how the parent arrived at their balance of $$84,960$ as of December $31,2022.$ Identify all debits and credits in T account. Worth $3$ points

$4.$ What amount of $$net income$$ will be reported in the consolidated income statement for the year ending December $31,2022?$ Worth $3$ points

$6.$ What amount of $$retained earnings$$ will appear in the consolidated balance sheet at December $31,2022?$ Worth $2$ points

$7.$ What amount of $$expenses$$ will appear in the consolidated income statement for the year ending December $31,2022?$ Worth $2$ points