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Foxx Corporation acquired all of Greenburg Company's outstanding stock on January 1, 2019, for $724,000 cash. Greenburg's accounting records showed net assets on that date of $560,000, aithough equipment with a 10-year remaining life was undervalued on the records by $87.500. Any recognized goodwill is considered to have an indefinite life. Greenburg reports net income in 2019 of $108,500 and $121,000 in 2020. The subsidiary declared dividends of $20,000 in each of these two years. Account balances for the year ending December 31, 2021, follow. Credit balances are indicated by parentheses. a. Determine the December 31, 2021, consolidated balance for each of the following accounts: b. How does the parent's 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? d. Determine parent's investment income for 2021 under partial equity method and equity method. e. What would be Foxx's balance for retained earnings as of January 1. 2021, 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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