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Foxx Corporation acquired all of Greenburg Company's outstanding stock on January 1, 2019. for $600.000 cash. Greenburg's accounting records showed net assets on that date of \$470,000 , although equipment with a 10-year remaining life was undervalued on the records by \$90,000 . Any recognized goodwill is considered to have an indefinite life Greenburg reports net income in 2019 of \$90,00 and 5100,000 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. Revenues Cost of goods sold Depreciation expense Investment Income net income Metained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Current senate Investment in subsidiary Equipment (net) Buildings (net Land Total assets Liabilities Common stock hantering Total liabilities and equity Greenbure (00,000) S (600.000) 100.000 300.000 120.000 150.000 350.000 (420.000) (100,000) \$(1,100,000) (420,000) 120.000 3(1,400,000) 5 320,000) (100,000) 20.000 (400,000) 300.000 300.000 400.000 3,2~00,000 $ 1,200,000 100.000 $ 900,000) 5 (500,000) 900.000 (300,000) 1.400.000 (400,000) 50.200.000 1~(1,200,000) a. Determine the December 31, 2021 consolidated balance for each of the following accounts: nces

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Question Completion:

Foxx Corporation acquired all of Greenburg Company's outstanding stock on January 1, 2019. for $600.000 cash. Greenburg's accounting records showed net assets on that date of $470,000 , although equipment with a 10-year remaining life was undervalued on the records by \$90,000 . Any recognized goodwill is considered to have an indefinite life Greenburg reports net income in 2019 of $90,00 and $100,000 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.

                                               Foxx          Greenburg

Revenues                           $800,000     $600,000

Cost of goods sold               100,000        150,000

Depreciation expense         300,000       350,000

Investment income                20,000        0

Net income                          420,000        100,000

Retained earnings, 1/1/21   1,100,000       320,000

Net income                          420,000        100,000

Dividends paid                     120,000         20,000

Retained earnings            1,400,000       400,000

Current assets                    300,000       100,000

Investment in subsidiary     600,000        0

Equipment                           900,000     600,000

Buildings                              800,000     400,000

Land                                     600,000     100,000

Total assets                      3,200,000  1,200,000

Liabilities                             900,000    500,000

Common stock                   900,000    300,000

Retained earnings           1,400,000    400,000

Total liabilities + equity   3,200,000  1,200,000

a. Determine the December 31, 2021 consolidated balance for each of the following accounts:

Depreciation Expense

Dividends paid

Revenue

Equipment

Buildings

Goodwill

Common Stock

Answer:

a. Determination of the December 31, 2021 consolidated balance for each of the following accounts:

Depreciation Expense = $650,000

Dividends paid = $120,000

Revenue = $1,400,000

Equipment = $1,500,000

Buildings = $1,200,000

Goodwill = $40,000

Common Stock = $900,000

Explanation:

                                               Foxx          Greenburg     Consolidated

Depreciation Expense          300,000       350,000         $650,000

Dividends paid                      120,000          20,000          $120,000

Revenues                           $800,000     $600,000       $1,400,000

Equipment                           900,000        600,000       $1,500,000

Buildings                              800,000        400,000       $1,200,000

Goodwill                                 40,000                                    40,000

Common Stock                   900,000        300,000         $900,000

Goodwill:

Investment in Greenburg = $600,000

Net assets of Greenburg =   560,000 ($470,000 + 90,000)

Goodwill acquired =              $40,000

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