Determining ending consolidated balances in the second year following the acquisition—Equity method Assume a parent company acquired a subsidiary on January 1, 2021. The purchase price was $570,000 in excess of the subsidiary’s book value of Stockholders’ Equity on the acquisition date, and that excess was assigned to the following [A] assets: [A] Asset Original AmountOriginal Useful Life (years)Property, plant and equipment (PPE), net$270,00012Goodwill300,000Indefinite$570,000 The AAP asset relating to undervalued PPE with a 12-year useful life has been depreciated as part of the parent’s equity method accounting. The financial statements of the parent and its subsidiary for the year ended December 31, 2022, are as follows: ParentSubsidiaryParentSubsidiaryIncome statement:Balance sheet:Sales$4,500,000$1,125,000AssetsCost of goods sold(2,625,000)(675,000)Cash$545,250$289,500Gross profit1,875,000450,000Accounts receivable750,000261,000Equity income127,500Inventory1,200,000331,500Operating expenses(750,000)(300,000)Equity investment1,404,750Net income$1,252,500$150,000Property, plant and equipment (PPE), net3,600,000618,000$7,500,000$1,500,000Statement of retained earnings:BOY retained earnings$750,000$585,000Liabilities and stockholders’ equityNet income1,252,500150,000Accounts payable$675,000$105,000Dividends(157,500)(24,000)Accrued liabilities900,000140,250Ending retained earnings$1,845,000$711,000Long-term liabilities2,100,000375,000Common stock480,00075,000APIC1,500,00093,750Retained earnings1,845,000711,000$7,500,000$1,500,000 At what amount will the following accounts appear on the consolidated financial statements? Note: Do not use negative signs with your answers. a.SalesAnswer 1 b.Equity incomeAnswer 2 c.Operating expensesAnswer 3 d.Accounts receivableAnswer 4 e.Equity investmentAnswer 5 f.Property plant and equipment (PPE) netAnswer 6 g.GoodwillAnswer 7 h.Common stockAnswer 8 i.Retained earningsAnswer 9 Feedback Partially correct Marks for this submission: 7.78/10.00.