********REQ D and E needed!!!***********

Foxx Corporation acquired all of Greenburg Company's outstanding stock on January 1, 2013, for $863,000 cash. Greenburg's accounting records showed net assets on that date of $701,000, although equipment with a 10-year life was undervalued on the records by $86,500. Any recognized goodwill is considered to have an indefinite life Greenburg reports net income in 2013 of $136,000 and $103,500 in 2014. The subsidiary declared dividends of $20,000 in each of these two years. Account balances for the year ending December 31, 2018, follow. Credit balances are indicated by parentheses Foxx Greenburg $ (1,140,000) Revenues Cost of goods sold Depreciation expense Investment income 142,500 304,000 (20,000) (713,500) (968,000) 242,000 414,000 Net income (312,000) Retained earnings, 1/1/18 Net income Dividends declared (406,000) (312,000) 20,000 $ (1,288,000) (713,500) 120,000 $(1,881,500) $ 388,000 Retained earnings, 12/31/18 $ (698,000) 114,000 Current assets Investment in subsidiary Equipment (net) Buildings (net) Land 863,000 922,000 970,000 628,000 748,000 494,000 110,000 Total assets $3,771,000 $1,466,000 Foxx Corporation acquired all of Greenburg Company's outstanding stock on January 1, 2013, for $863,000 cash. Greenburg's accounting records showed net assets on that date of $701,000, although equipment with a 10-year life was undervalued on the records by $86,500. Any recognized goodwill is considered to have an indefinite life Greenburg reports net income in 2013 of $136,000 and $103,500 in 2014. The subsidiary declared dividends of $20,000 in each of these two years. Account balances for the year ending December 31, 2018, follow. Credit balances are indicated by parentheses Foxx Greenburg $ (1,140,000) Revenues Cost of goods sold Depreciation expense Investment income 142,500 304,000 (20,000) (713,500) (968,000) 242,000 414,000 Net income (312,000) Retained earnings, 1/1/18 Net income Dividends declared (406,000) (312,000) 20,000 $ (1,288,000) (713,500) 120,000 $(1,881,500) $ 388,000 Retained earnings, 12/31/18 $ (698,000) 114,000 Current assets Investment in subsidiary Equipment (net) Buildings (net) Land 863,000 922,000 970,000 628,000 748,000 494,000 110,000 Total assets $3,771,000 $1,466,000