On January $1,$ Year $4,$ Goodkey Co$.$ acquired all of the common shares of Jingya. The condensed

income statements for the two companies for January, Year $5,$ were as follows:

The following transactions occurred in January, Year $5,$ and are properly reflected in the income

statements above:

On January $1,$ Year $5,$ Jingya sold equipment to Goodkey for $$1,180,000$ and reported a gain of

$$276,000.$ On this date, the equipment had a remaining useful life of four years.

On January $31,$ Year $5,$ Jingya paid a dividend of $$780,000.$

Goodkey uses the cost method to account for its investment in Jingya. Both companies pay income

tax at the rate of $40\%.$

Required:

$($a$)$ Prepare a consolidated income statement for January, Year $5.($Input all values as positive

numbers, Leave no cells blank $-$ be certain to enter $"0"$ wherever required, Do not round your

intermediate calculations. Round your final answer to nearest whole dollar. Omit $ sign in

your response.$)$

$($b$)$ Now assume that Goodkey uses the equity method to account for its investment in Jingya. What

accounts would change on the three income statements $($Goodkey$,$ Jingya, and consolidated$)$ in

January, Year $5,$ and what would be the account balances? $($If option "Everything would be the

same" is selected, update the net income in the Account balance field. Omit $ sign in your

response.$)$

$($c$)$ Now assume that Goodkey only owns $80\%$ of the common shares of Jingya and uses the cost

method to account for its investment in Jingya. What accounts would change $($as compared to part

$($a$))$ on the three income statements $($Goodkey$,$ Jingya, and consolidated$)$ in January, Year $5,$ and

what would be the account balances? $($If option "Everything would be the same" is selected,

update the net income in the Account balance field. Do not round your intermediate

calculations, Round your final answer to nearest whole dollar. Omit $ sign in your response.$)$