Please use the information below to answer questions a-d. Phan acquired all of ABCs common stock on Jan. 1, 2021, in exchange for $950,000 in cash. On that day, ABC reported common stock of $250,000 and retained earnings of $400,000. At the acquisition date, $150,000 of the fair-value price was attributed to undervalued land while $70,000 was assigned to undervalued equipment having a 5-year remaining life. Any excess of consideration transferred over fair value of net assets acquired is considered goodwill. Over the next few years, Phan applied the equity method to the recording of this investment. The following are individual financial statements for the year ending Dec. 31, 2022.

A. How much equity income (or equity in income of ABC) will Phan report on its internal accounting records as a result of ABCs operations in 2022?

B. Compute the Dec. 31, 2022, consolidated equipment & consolidated retained earnings

C. Compute the Dec. 31, 2022, consolidated total liabilities & stockholders equity.

D. Assume that Phan uses equity method to keep track of the investment internally. What balance would Phans Investment in ABC balance on Jan. 1, 2022 on its internal accounting records? This question is a little tough but rest assured all the information is there for you to figure out the answer.

THE ABOVE INFORMATION WAS ALL THAT WAS GIVEN. Please show work and highlight answer. PLEASE COMPLETE ALL PARTS AS IT IS A COMPOUNDING QUESTION and as part of Chegg's guidelines, compounding questions must be answered up to 4 parts.

\begin{tabular}{|l|l|c|c|} \hline & Phan & & ABC \\ \hline & 12/31/22 & & 12/31/22 \\ \hline Revenues & (850,000) & & (380,000) \\ \hline Cost of goods sold & 490,000 & & 150,000 \\ \hline Depreciation expense & 190,000 & & 120,000 \\ \hline Equity in income of ABC & & \\ \hline Net income & & & (110,000) \\ \hline & & & \\ \hline Retained earnings, 1/1/22 & (1,200,000) & & (480,000) \\ \hline Net income & & & (100,000) \\ \hline Dividends declared & 110,000 & & 25,000 \\ \hline Retained earnings, 12/31/22 & & & (565,000) \\ \hline & & & \\ \hline Current assets & 315,000 & & 125,000 \\ \hline Investment in ABC & & & \\ \hline Land & 440,000 & & 165,000 \\ \hline Buildings (net) & 304,000 & & 419,000 \\ \hline Equipment (net) & 341,000 & & 244,000 \\ \hline Total assets & & & 953,000 \\ \hline & & & \\ \hline Liabilities & (681,000) & & (138,000) \\ \hline Common stock & (450,000) & & (250,000) \\ \hline Retained earnings & & & (565,000) \\ \hline Total liabilities and equity & & & (953,000) \\ \hline \end{tabular} \begin{tabular}{|l|l|c|c|} \hline & Phan & & ABC \\ \hline & 12/31/22 & & 12/31/22 \\ \hline Revenues & (850,000) & & (380,000) \\ \hline Cost of goods sold & 490,000 & & 150,000 \\ \hline Depreciation expense & 190,000 & & 120,000 \\ \hline Equity in income of ABC & & \\ \hline Net income & & & (110,000) \\ \hline & & & \\ \hline Retained earnings, 1/1/22 & (1,200,000) & & (480,000) \\ \hline Net income & & & (100,000) \\ \hline Dividends declared & 110,000 & & 25,000 \\ \hline Retained earnings, 12/31/22 & & & (565,000) \\ \hline & & & \\ \hline Current assets & 315,000 & & 125,000 \\ \hline Investment in ABC & & & \\ \hline Land & 440,000 & & 165,000 \\ \hline Buildings (net) & 304,000 & & 419,000 \\ \hline Equipment (net) & 341,000 & & 244,000 \\ \hline Total assets & & & 953,000 \\ \hline & & & \\ \hline Liabilities & (681,000) & & (138,000) \\ \hline Common stock & (450,000) & & (250,000) \\ \hline Retained earnings & & & (565,000) \\ \hline Total liabilities and equity & & & (953,000) \\ \hline \end{tabular}