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Question) what are the actual equations to get the amounts for the Investment in Suaro, the Income of Suaro, and Retained Earnings accounts for equity, partial equity, and initial value methods?

Pecos Company acquired 100 percent of Suaro's outstanding stock for $1,450,000 cash on 1/1/2014, when Suaro had the following balance sheet:

Cash - $37,000 Liabilities - ($422,000)

Receivables - $82,000 Common Stock - ($350,000)

Inventory - $149,000 Retained Earnings - ($126,000)

land - $90,000 Total Liabilities and Equity - ($898,000)

Equipment (net) - $225,000

Software - $315,000

Total Assets - $898,000

At the acquisition date, the fair values of each identifiable asset and liability that differed from book value are:

Land - $80,000

Brand Name - $60,000 - indefinite life - unrecognized on Suaro's books

Software - $415,000 - 2 yr estimated useful life

In-Process R&D - $300,000

Additional Info:

1) Although at acquisition date Pecos expected future benefits from Suaro's in-process R&D, by the end of 2014, it became clear it was a failure with no future economic benefits.

2) During 2014, Suaro earns $75,000 and pays no dividends

3) Selected amounts form Pecos and Suaro's separate financial statements at Dec 31, 2015, are presented in the consolidated information worksheet. All consolidate worksheets are to be prepared as of Dec 31, 2015

4) Pecos Jan 1, 2015, Retained Earnings balance - before any effect from Suaro's 2014 income - is ($930,000) (credit balance)

5) Pecos has 500,000 common shares outstanding EPS calculations and reported $2,943,100 for consolidated assets at the beginning of the period.

The following is the consolidated information worksheet:

A	B	C	D
Dec 31, 2015, Trial Balances
	Pecos	Suaro
Revenues	($1,052,000)	($427,000)
Operating Expenses	$821,000	$262,000
Goodwill Impairment Loss	?
Income from Suaro	?
Net Income	?	($165,000)
Retained Earnings - Pecos 1/1/15	?
Retained Earnings - Suaros 1/1/15		($201,000)
Net Income (Above)	?	($165,000)
Dividends Declared	$200,000	$35,000
Retained Earnings 12/31/15	?	($331,000)
Cash	$195,000	$95,000
Receivables	$247,000	$143,000
Inventory	$415,000	$197,000
Investment in Suaro	?
land	$341,000	$85,000
equipment	$240,100	$100,000
Software		$312,000
Other Intangibles	$145,000
Goodwill
Total Assets	?	$932,000
Liabilities	($1,537,100)	($251,000)
Common stock	($500,000)	($350,000)
Retained Earnings (Above)	?	($331,000)
Total Liabilities and Equity	?	($932,000)
Fair-Value allocation schedule
Price paid	$1,450,000
Book value	$476,00
Excess initial value	$974,000	Amortizations
to land	($10,000)	2014	2015
to brand name	$60,000	?	?
to software	$100,000	?	?
to IPR&D	$300,000	?	?
to goodwill	$524,000	?	?
Suaro's RE changes	Income	Dividends
2014	$75,000	$0
2015	$165,000	$35,000

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