Prepare a worksheet to consolidate the financial information for these two companies. compute the following amounts that would appear on pinnacle’s 2018 separate (nonconsolidated) financial records if pinnacle’s investment accounting was based on the equity method. subsidiary income. retained earnings, 1/1/18. investment in strata. what effect does the parent’s internal investment accounting method have on its consolidated financial statements?

On december 31, 2013, coronado company issues 173,000 stock-appreciation rights to its officers entitling them to receive cash for the difference between the market price of its stock and a pre-established price of $10. the fair value of the sars is estimated to be $5 per sar on december 31, 2014; $2 on december 31, 2015; $10 on december 31, 2016; and $8 on december 31, 2017. the service period is 4 years, and the exercise period is 7 years. prepare a schedule that shows the amount of compensation expense allocable to each year affected by the stock-appreciation rights plan.