Use the information in Exhibits 1 and 2. For the following q…
Use the information in Exhibits 1 and 2. For the following questions, assume that Springfield uses the Cost Method to account for its investment in Lincoln instead of instead of the equity method. Required (Please show your calculations in good form to the extent possible; using thousands (‘000s) is allowed): Assume Lincoln’s Retained Earnings Balance on January 1st 2015 was $749,000. Calculate the amount. What would be the pre-consolidation balance for Income (loss) from subsidiary. Would any of the consolidated balances calculated using the information in Exhibits 1 and 2 change? Briefly explain.