On January 2, 2013, Parker Corporation invests in the stock of Quarry Corporation. Quarry's book value is $4 million and its assets and liabilities are fairly reported. Quarry reports income of $3 million and pays dividends of $1 million in 2013. Parker's December 31, 2013, balance sheet and 2013 income statement, ignoring its investment in Quarry's stock, follow.

Quarry Corporation's financial statements for 2013 are as follows:

Required
Prepare Parker's December 31, 2013, balance sheet and 2013 income statement under each of the following circumstances:
a. Parker's investment consists of 100,000 shares costing $15/share, and Parker classifies it as an AFS investment. The shares have a market value of $12/share on December 31, 2013.
b. Parker's investment consists of 400,000 shares costing $15/share, and Parker accounts for it using the equity method.
c. Parker acquires all of Quarry's shares for $15 million, retires the shares and merges with Quarry. Goodwill is unimpaired in 2013.

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PARKER CORPORATION Balance Sheet (in thousands) December 31, 2013 Current assets..40,000 Current liabilities.$ 20,000 Property, net Identifiable intangibles 450,000 Long-term liabilities200,000 90,000 185,000 5,000 Capital stock.... Retained earnings Total liabilities and equity.。.. , , Total assets , , , , , $495,000 $495,000 …··.. . PARKER CORPORATION Income Statement (in thousands) Year ended December 31, 2013 Sales revenue..$900.000 140,000) Net incomeRA.$10,000 QUARRY cORPORATION Balance Sheet (in thousands) December 31, 2013 3,000 81,000 1,000 5,000 Total liabilities and equity.$90,000 Current liabilities.... Current assets5 Property, net. 5,000 85,000 Long-term liabilities.. Capital stock, $1 par Retained earnings Total assets QUARRY CORPORATION Income Statement (in thousands) Year endled December 31, 2013 Sales revenuea.*.$60,000 (20.000) 37,000) Net income... 3,000