Pueblo Corporation acquired all of Spartan Companys outstanding stock on January 1, 2018, for $1,320,000 cash. Spartans accounting records reflected net assets on that date of $1,034,000, although equipment with a 10-year life was undervalued on the records by $198,000. Any recognized goodwill is considered to have an indefinite life. Spartan reports net income in 2018 of $198,000 and $220,000 in 2019. The subsidiary paid dividends of $44,000 in each of these two years. Financial figures for the year ending December 31, 2020, follow. Credit balances are indicated by parentheses. Pueblo Spartan Revenues. $(1,760,000) $(1,320,000) Cost of goods sold 220,000 330,000 Depreciation expense. 660,000 770,000 Investment income. . (44,000) 0 Net income $(924,000) $(220,000) Retained earnings 1/1/20 . . $(2,420,000) $(704,000) Net income (924,000) (220,000) Dividends paid 264,000 44,000 Retained earnings, 12/31/17 $(3,080,000) $(880,000) Current assets. $660,000 $220,000 Investment in subsidiary 1,320,000 0 Equipment (net) 1,980,000 1,320,000 Buildings (net) 1,760,000 880,000 Land. 1,320,000 220,000 Total assets $7,040,000 $2,640,000 Liabilities. $(1,980,000) $(1,100,000) Common stock. (1,980,000) (660,000) Retained earnings . . (3,080,000) (880,000) Total liabilities and equity. $(7,040,000) $(2,640,000) Complete the following: a. Determine the December 31, 2020, consolidated balance for each of the following accounts: Depreciation Expense Dividends Paid Revenues Equipment Buildings Goodwill Common Stock b. How does the parents choice of an accounting method for its investment affect the balances computed in requirement (a)? c. Which method of accounting for this subsidiary is the parent actually using for internal reporting purposes? Equity method d. If the parent company had used a different method of accounting for this investment, how could that method have been identified?Investment account, income recognized, and retained earnings are affected by the method chosen. e. What would be Pueblos balance for retained earnings as of January 1, 2020, if each of the following methods had been in use? Initial value method Partial equity method Equity method