Allen Company acquired 100 percent of Bradford Company's voting stock on January 1, 2017,by issuing 10,000 shares of its $10 par value common stock (having a fair value of $14 per share). As of that date, Bradford had stockholders' equity totaling $105,000. Land shown on Bradford's accounting records was undervalued by $10,000. Equipment (with a five-year remaining life) was undervalued by $5,000. A secret formula developed by Bradford was appraised at $20,000 with an estimated life of 20 years. what is the subsidiary earnings in Allen company when Bradford Company's net income is 68000

Haynes, Inc., obtained 100 percent of Turner Company’s commonstock on January 1, 2014, by issuing 9,000 shares of $10 par valuecommon stock. Haynes’s shares had a $15 per share fair value. Onthat date, Turner reported a net book value of $100,000. However,its equipment (with a five-year remaining life) was undervalued by$5,000 in the company’s accounting records. Also, Turner haddeveloped a customer list with an assessed value of $30,000,although no value had been recorded on Turner’s books. The customerlist had an estimated remaining useful life of 10 years. Thefollowing figures come from the individual accounting records ofthese two companies as of December 31, 2014: Haynes Turner Revenues$ (600,000 ) $ (230,000 ) Expenses 440,000 120,000 Investmentincome Not given 0 Dividends declared 80,000 50,000 The followingfigures come from the individual accounting records of these twocompanies as of December 31, 2015: Haynes Turner Revenues $(700,000 ) $ (280,000 ) Expenses 460,000 150,000 Investment incomeNot given 0 Dividends declared 90,000 40,000 Equipment 500,000300,000 a. What balance does Haynes’s Investment in Turner accountshow on December 31, 2015, when the equity method is applied? b.What is the consolidated net income for the year ending December31, 2015? c-1. What is the consolidated equipment balance as ofDecember 31, 2015? c-2. Would this answer be affected by theinvestment method applied by the parent? Yes No d. Prepare entry *Cif the parent used the equity method. (If no entry is required fora transaction/event, select "No journal entry required" in thefirst account field.)

Pell Company acquires 80% of Demers Company for $500,000 on January 1, 2014. Demers reported common stock of $300,000 and retained earnings of $210,000 on that date. Equipment was undervalued by $30,000 and buildings were undervalued by $40,000, each having a 10-year remaining life. Any excess consideration transferred over fair value was attributed to goodwill with an indefinite life. Based on an annual review, goodwill has not been impaired. Demers earns income and pays dividends as follows: Net Income-2014-100,000, 2015-120,000, 2016-130,000. Dividends-2014-40,000, 2015-50,000, 2016-60,000. Assume the EQUITY METHOD is applied. Compute Pell's investment account balance in Demers at December 31, 2015.  $604,000.  $632,800.  $577,200.  $572,000.  $592,800.

Pell Company acquires 80% of Demers Company for $500,000 on January 1, 2014. Demers reported common stock of $300,000 and retained earnings of $210,000 on that date. Equipment was undervalued by $30,000 and buildings were undervalued by $40,000, each having a 10-year remaining life. Any excess consideration transferred over fair value was attributed to goodwill with an indefinite life. Based on an annual review, goodwill has not been impaired.

Demers earns income and pays dividends as follows: 2014. 2015. 2016
net income. 100000. 120000. 130000
dividends. 40000. 50000. 60000

Assume the initial value method is applied.
Make journal entry C if consolidation worksheet is to prepared