On the first of January 2019, Mound, Co paid 100.000 cash for a

100%

investment in Woods td. Other costs arise from the acquisition are excluded. Mound applies the Equity Method for registering activities of its subsidiaries. The fair value of Buildings is

$90,000

with a remaining useful life of

10yrs

.\ At the end of the first year both companies report the following financials statements:\ \\\\table[[\\\\table[[Financial statements],[Income statement],[Sales]],31-12-2019,31-12-2019],[Mound Inc.,Woods Ltd.],[

$

,150.000,

$

,70.000],[Cost of goods sold,

$

,110.000,

$

,45.500],[Depreciation expense,

$

,12.000,

$

,10.600],[Interest expenses,

$

,10.750,

$

,7.600],[Equity in Woods Ltd.,

$

,3.300,,],[Net income,

$

,20.550,

$

,6.300],[Retained earnings

(1)/(1)

,

$

,39.050,

$

,-],[Dividends declared,

$

,8.000,

$

,6.300],[Net income,

$

,20.550,

$

,6.300],[* Retained earnings 31/12,

$

,51.600,

$

,-],[Balance sheet],[Assets],[Non-current assets],[Land and plants,

$

,100.000,,],[Buildings,

$

,72.000,

$

,54.000],[Equipment,

$

,16.000,

$

,18.400],[Investment in Woods Ltd.,

$

,97.000,,],[Current assets],[Inventories,

$

,40.000,

$

,28.000],[Trade and other receivables,

$

,28.500,

$

,15.000],[Cash and cash equivalents,

$

,124.600,

$

,26.600],[Total assets,

$

,478.100,

$

,142.000],[Equity and Liabilities],[Retained earnings*,

$

,51.600,

$

,-],[Add Paid-in Capital,

$

,41.500,

$

,12.000],[Common Stock,

$

,175.000,

$

,40.000],[Liabilities,

$

,210.000,

$

,90.000],[Total Equity and Liabilities,

$

,478.100,

$

,142.000]]

On the first of January 2019, Mound, Co paid 100.000 cash for a 100% investment in Woods td. Other costs arise from the acquisition are excluded. Mound applies the Equity Method for registering activities of its subsidiaries. The fair value of Buildings is $90,000 with a remaining useful life of 10yrs. At the end of the first year both companies report the following financials statements