Check my work Greenburg reports net income in 2022 of $113,500 and $103,000 in 2023. The...

 

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Check my work Greenburg reports net income in 2022 of $113,500 and $103,000 in 2023. The subsidiary declared dividends of $20,000 in each of these two years. Account balances for the year ending December 31, 2024, follow. Credit balances are indicated by parentheses. Items Revenues Cost of goods sold Foxx $ (1,160,000) Greenburg $ (680,000) Depreciation expense Investment income Net income Retained earnings, 1/1/24 Net income Dividends declared Retained earnings, 12/31/24 Current assets Investment in subsidiary Equipment (net) Buildings (net) Land Total assets Liabilities 145,000 348,000 (20,000) $ (687,000) $ (1,296,000) (687,000) 120,000 $ (1,863,000) $ 317,000 647,000 922,000 958,000 732,000 $ 3,576,000 $ (813,000) (900,000) (1,863,000) 170,000 429,000 0 $ (81,000) $ (356,500) (81,000) 20,000 $ (417,500) $ 197,000 0 716,000 538,000 147,000 $ 1,598,000 $ (880,500) (300,000) (417,500) Common stock Retained earnings Total liabilities and equity $ (3,576,000) $ (1,598,000) Required: a. Determine the December 31, 2024, consolidated balance for each of the following accounts: Depreciation Expense Dividends Declared Revenues Equipment Buildings Goodwill Common Stock b. How does the parent's choice of an accounting method for its investment affect the balances computed in requirement part (a)? c. Which method of accounting for this subsidiary is the parent actually using for internal reporting purposes? d. What would be Investment income if each of the following methods had been in use? e. What would be Foxx's balance for retained earnings as of January 1, 2024, if each of the following methods had been in use? Initial value method. Partial equity method. Equity method. Complete this question by entering your answers in the tabs below. Check my work Greenburg reports net income in 2022 of $113,500 and $103,000 in 2023. The subsidiary declared dividends of $20,000 in each of these two years. Account balances for the year ending December 31, 2024, follow. Credit balances are indicated by parentheses. Items Revenues Cost of goods sold Foxx $ (1,160,000) Greenburg $ (680,000) Depreciation expense Investment income Net income Retained earnings, 1/1/24 Net income Dividends declared Retained earnings, 12/31/24 Current assets Investment in subsidiary Equipment (net) Buildings (net) Land Total assets Liabilities 145,000 348,000 (20,000) $ (687,000) $ (1,296,000) (687,000) 120,000 $ (1,863,000) $ 317,000 647,000 922,000 958,000 732,000 $ 3,576,000 $ (813,000) (900,000) (1,863,000) 170,000 429,000 0 $ (81,000) $ (356,500) (81,000) 20,000 $ (417,500) $ 197,000 0 716,000 538,000 147,000 $ 1,598,000 $ (880,500) (300,000) (417,500) Common stock Retained earnings Total liabilities and equity $ (3,576,000) $ (1,598,000) Required: a. Determine the December 31, 2024, consolidated balance for each of the following accounts: Depreciation Expense Dividends Declared Revenues Equipment Buildings Goodwill Common Stock b. How does the parent's choice of an accounting method for its investment affect the balances computed in requirement part (a)? c. Which method of accounting for this subsidiary is the parent actually using for internal reporting purposes? d. What would be Investment income if each of the following methods had been in use? e. What would be Foxx's balance for retained earnings as of January 1, 2024, if each of the following methods had been in use? Initial value method. Partial equity method. Equity method. Complete this question by entering your answers in the tabs below.

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Foxx Greenburg Consolidation Schedule a Consolidated Balances as of December 31 2024 Account Foxx Greenburg Consolidated Depreciation Expense 145000 1... View the full answer