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Opus, Incorporated, owns 80 percent of Bloom Company, On December 31, 2017, Opus acquires half of Bloom's $650,000 outstanding bonds. These bonds had been sold on the open market on January 1, 2015, at a 12 percent effective rate. The bonds pay a cash interest rate of 10 percent every December 31 and are scheduled to come due on December 31, 2027. Bloom issued this debt originally for $566,494. Opus paid $362,353 for this investment, indicating an 8 percent effective yield. a. Assuming that both parties use the effective rate method, what gain or loss from the retirement of this debt should be reported on the consolidated income statement for 2017? b. Assuming that both parties use the effective rate method, what balances should appear in the Investment in Bloom Bonds account on Opus's records and the Bonds Payable account of Bloom as of December 31, 2018? Assuming that both parties use the straight-line method, what consolidation entry would be required on December 31, 2018, because of these bonds? Assume that the parent is not applying the equity method. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C Assuming that both parties use the effective rate method, what gain or loss from the retirement of this debt should be reported on the consolidated income statement for 2017? (Round your intermediate calculations to the nearest dollar amount.) Loss on retirement 74,080 a. Assuming that both parties use the effective rate method, what gain or loss from the retirement of this debt should be reporte the consolidated income statement for 2017? b. Assuming that both parties use the effective rate method, what balances should appear in the Investment in Bloom Bonds ac on Opus's records and the Bonds Payable account of Bloom as of December 31, 2018? c. Assuming that both parties use the straight-line method, what consolidation entry would be required on December 31, 2018, because of these bonds? Assume that the parent is not applying the equity method. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required Assuming that both parties use the effective rate method, what balances should appear in the Investment in Bloom Bonds account on Opus's records and the Bonds Payable account of Bloom as of December 31, 2018? (Round your intermediate calculations to the nearest dollar amount.) Investment in Bloom bonds, 12/31/18 Bonds payable, 12/31/18 $ 320,000 Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required Assuming that both parties use the straight-line method, what consolidation entry would be required on December 31, 2018, because of these bonds? Assume that the parent is not applying the equity method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate calculations to the nearest dollar amount.) Show less No Transaction Accounts Debit Credit 1 1 325,000 95,165 Bonds payable Interest income Retained earnings Investment in Bloom Bonds Interest expense 57,812 362,353 Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2016. Miller paid $896,000 in cash to the owners of Taylor to acquire these shares. In addition, the remaining 20 percent of Taylor shares continued to trade at a total value of $224,000 both before and after Miller's acquisition. On January 1, 2016, Taylor reported a book value of $582,000 (Common Stock = $291,000; Additional Paid-In Capital = $87,300; Retained Earnings - $203,700). Several of Taylor's buildings that had a remaining life of 20 years were undervalued by a total of $77,700. During the next three years, Taylor reports income and declares dividends as follows: Dividends $ 9,90 89, 100 Year 2016 Net Income $ 68,400 2017 2018 99, 300 14,900 19,900 Determine the appropriate answers for each of the following questions: a. What amount of excess depreciation expense should be recognized in the consolidated financial statements for the initial years following this acquisition? b. If a consolidated balance sheet is prepared as of January 1, 2016, what amount of goodwill should be recognized? c. If a consolidation worksheet is prepared as of January 1, 2016, what Entry S and Entry A should be included? d. On the separate financial records of the parent company, what amount of investment income would be reported for 2016 under each of the following accounting methods? The equity method The partial equity method. The initial value method. e. On the parent company's separate financial records, what would be the December 31, 2018, balance for the Investment in Taylor Company account under each of the following accounting methods? The equity method The partial equity method. The initial value method. f. As of December 31, 2017, Miller's Buildings account on its separate records has a balance of $796,000 and Taylor has a similar account with a $298,500 balance. What is the consolidated balance for the Buildings account? g. What is the balance of consolidated goodwill as of December 31, 2018? h. Assume that the parent company has been applying the equity method to this investment. On December 31, 2018, the separate financial statements for the two companies present the following information: Common stock Additional paid-in capital Retained earnings, 12/31/18 Miller Company $ 497,500 278,600 616,900 Taylor Company $ 291,600 87,300 415,800 What will be the consolidated balance of each of these accounts? Answer is not complete. Complete this question by entering your answers in the tabs below. Req A and B Reqc Req Dand e Reg F and G ReqH a.What amount of excess depreciation expense should be recognized in the consolidated financial statements for the initial years following this acquisition? b. If a consolidated balance sheet is prepared as of January 1, 2016, what amount of goodwill should be recognized? a $ Amount of excess depreciation Amount of goodwill 3,885 b 460,300 Answer is not complete. Complete this question by entering your answers in the tabs below. Req A and B ReqC Reg D and E Req F and G ReqH 1 > If a consolidation worksheet is prepared as of January 1, 2016, what Entry S and Entry A should be included? No Event Accounts Debit Credit January 01, 2016 Common stock 291,000 Additional paid-in capital 87,300 Retained earnings - Taylor 203,700 Investment in Taylor 465,600 Noncontrolling interest in Taylor 116,400 2 77,700 January 01, 2016 Buildings Goodwill Investment in Taylor Noncontrolling interest in Taylor 460,300 430,400 107,600 Reg A and Answer is not complete. Complete this question by entering your answers in the tabs below. Req A and B ReqC Reg D and Reg F and G ReqH d. On the separate financial records of the parent company, what amount of investment income would be reported for 2016 under each of the following accounting methods? e. On the parent company's separate financial records, what would be the December 31, 2018, balance for the Investment in Taylor Company account under each of the following accounting methods? Show less d. Investment Income $ 51,612 Investment Balance The equity method The partial equity method The initial value method $ 54,720 $ 7,920 Answer is not complete. Complete this question by entering your answers in the tabs below. Req A and B Reqc Reg D and E Req F and G ReqH f. As of December 31, 2017, Miller's Buildings account on its separate records has a balance of $796,000 and Taylor has a similar account with a $298,500 balance. What is the consolidated balance for the Buildings account? 9. What is the balance of consolidated goodwill as of December 31, 2018? 1. $ 540,000 Consolidated balance Consolidated balance 9 $ 360,000 Answer is not complete. Complete this question by entering your answers in the tabs below. Req A and B Reg C Reg D and E Req F and G ReqH Assume that the parent company has been applying the equity method to this investment. On December 31, 2018, the separate financial statements for the two companies present the following information: Miller Company Taylor Company Common stock $ 497,500 $ 291,000 Additional paid-in capital 278,600 87,300 Retained earnings, 12/31/18 616,900 415,800 What will be the consolidated balance of each of these accounts? Show less Common stock Additional paid-in capital Retained earnings 12/31/18