Paar Corporation bought 100 percent of Kimmel, Inc., on January 1, 2018. On that date, Paar's equipment (10-year remaining life) has a book value of $420,000 but a fair value of $520,000. Kimmel has equipment (10-year remaining life) with a book value of $272,000 but a fair value of $400,000. Paar uses the equity method to record its investment in Kimmel. On December 31, 2020, Poar has equipment with a book value of $294.000 but a fair value of $445,200.Kimmel has equipment with a book value of $190.400 but a fair value of $357,000. What would be the impact on consolidated balance for the Equipment account as of December 31, 2020 if the parent had applied the initial value method rather than the equity method? Multiple Choice The consolidated Equipment account would have a higher reported balance The balance in the consolidated Equipment account cannot be determined for the relat value method using the information given The comolidated Equipment account would have a lower reported balance No effect. The method the parent uses is for internal reporting purposes only and has no impact on consolidated total Franklin purchases 40 percent of Johnson Company on January 1 for $500,000. Although Franklin did not use it, this acquisition gave Franklin the ability to apply significant influence to Johnson's operating and financing policies. Johnson reports assets on that date of $1,400,000 with liabilities of $500,000. One building with a seven-year remaining life is undervalued on Johnson's books by $140,000. Also, Johnson's book value for its trademark (10-year remaining life) is undervalued by $210,000. During the year, Johnson reports net income of $90,000 while declaring dividends of $30,000. What is the investment in Johnson Company balance (equity method) in Franklin's financial records as of December 317 Multiple Choice 5507,600 $516.000 $513.900 $504,000 Vaughn Inc. acquired all of the outstanding common stock of Roberts Co. on January 1, 2020, for $276,000. Annual amortization of $21,000 resulted from this acquisition. Vaughn reported net income of $80,000 in 2020 and $60,000 in 2021 and paid $24,000 in dividends each year, Roberts reported net income of $50,000 in 2020 and $57,000 in 2021 and paid $12,000 in dividends each year. What is the investment in Roberts Co. balance on Vaughn's books as of December 31, 2021, if the equity method has been applied? Multiple Choice O $268.000 $341000 $326,000 $383.000