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Problem 1. Investment accounts post acquisition A subsidiary is acquired on January 1, 2019 at an acquisition cost of S100 million. The subsidiary's book value at the date of acquisition was $25 million, consisting of these accounts Capital stock Retained earnings Accumulated other comprehensive loss $8,000,000 18,000,000 (1,000,000) Following is revaluation information for the subsidiary's identifiable net assets at the date of acquisition: Plant assets, net Identifiable intangible assets ir Value $25,000,000 60,000,000 Book Value $40,000,000 0 Straight-line, 5 years Straight-line, 6 years It is now December 31, 2021, three years since the acquisition. The subsidiary reported the following amounts during the period 2019 - 2021 202 125,00 The subsidiary did not declare any dividends during this period. Goodwill for this 201 202 $12,000,0 300.0 et income $10,000,0 er comprehensive income loss 160,000 acquisition is not impaired as of the end of 2021. The parent uses the complete equity method to report its investment on its own books. Required: a. Calculate Equity in net income, reported on the parent's books, for 2021. (3 pts) b. Calculate Equity in OCI, reported on the parent's books, for 2021. (3 pts) c. What is the December 31, 2021 balance in the investment account, reported on the parent's books? (4 pts) (Use the space on the next page)

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