On January 2, 2019, Moonshine, Inc. acquired Cambridge as a wholly-owned subsidiary, paying an excess of $400,000 over the book value of Hudson's net assets. One-half of the excess was attributable to equipment with a 4-year life, leaving the remainder as goodwill. The parent uses the equity method of pre-consolidation Equity investment bookkeeping. The 2020 financial statements for the two companies are presented below. Moonshine, Inc. Cambridge
Sales $2,500,000 $600,000
Cost of goods sold 1,800,000 350,000
Gross profit 700,000 250,000
Operating expenses 386,000 82,000
Equity income 118,000
Net Income $432,000 $168,000
Retained Earnings, 1/1/20 $2,400,000 $160,000
Net income 432,000 168,000
Dividends 19,500 103,000
Retained Earnings, 12/31/20 $2,729,000 $308,500
Cash and receivables $1,250,000 $47,500
Inventory 1,540,000 98,000
Equity investment 683,500
Property, plant & equipment 5,605,500 360000
(Net)
Total Assets $9,079,000 505500
$39,000
Accounts payable $450,000 39000
Accrued liabilities 870,000 48,000
Notes payable 2,350,000 35,000
Common stock 480,000 30,000
Additional paid-in capital 2,200,000 45,000
Retained Earnings, 12/31/20 2,729,000 308,500
Total Liabilities and Equities $9,079,000 $505,500
Required: At what amount will the following accounts appear on the consolidated financial statements for 2020?
a. Sales
b. Equity Income
c. Operating Expenses
d. Accounts Payable
e. Equity Investment
f. Property, Plant and Equipment (net of accumulated depreciation)
g. Goodwill
h. Additional Paid-In Capital
i. Retained Earnings