Parkovash, Incorporated, obtained 100 percent of Salerno Companys common stock on January 1, 2023, by issuing 9,000 shares of $10 par value common stock. Parkovashs shares had a $15 per share fair value. On that date, Salerno reported a net book value of $100,000. However, its equipment (with a 5-year remaining life) was undervalued by $5,000 in the companys accounting records. Also, Salerno had developed computer software with an assessed value of $30,000, although no value had been recorded on Salernos books. The computer software had an estimated remaining useful life of 10 years.

The following balances come from the individual accounting records of these two companies as of December 31, 2023:

Items	Parkovash	Salerno
Revenues	$ (600,000)	$ (230,000)
Expenses	440,000	120,000
Investment income	Not given	0
Dividends declared	80,000	50,000

The following balances come from the individual accounting records of these two companies as of December 31, 2024:

Items	Parkovash	Salerno
Revenues	$ (700,000)	$(280,000)
Expenses	460,000	150,000
Investment income	Not given	0
Dividends declared	90,000	40,000
Equipment	500,000	300,000

Required:

a. What balance does Parkovashs Investment in Salerno account show on December 31, 2024, when the equity method is applied?

b. What is the consolidated net income for the year ending December 31, 2024?

c-1. What is the consolidated equipment balance as of December 31, 2024?

c-2. Would this answer be affected by the investment method applied by the parent?

d. Prepare entry *C for the beginning of the Retained Earnings account on a December 31, 2024 by using initial value, partial equity and equity method.