All ONE QUESTION:

Miller Company acquired an $80$ percent interest in Taylor Company on January $1,2022.$ 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 $1,2022,$ 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:

Year Net Income Dividends

$2022$ $ $68,400$ $ $9,900$

$202389,10014,900$

$202499,30019,900$

$1)$On the separate financial records of the parent company, what amount of investment income would be reported for $2022$ under each of the following accounting methods?

The equity method.

The partial equity method.

The initial value method.

$2)$On the parent company$$s separate financial records, what would be the December $31,2024,$ 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.

$3)$As of December $31,2023,$ 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?

$4)$What is the balance of consolidated goodwill as of December $31,2024?$

$5)$Assume that the parent company has been applying the equity method to this investment. On December $31,2024,$ the separate financial statements show that Miller had a common stock of $$497,500$ and additional paid$-$in capital of $$278,600$ with a retained earnings of $$616,900$ for the period ending $12/31/24$ and Taylor had a common stock of $$291,000$ and additional paid$-$in$-$capital of $$87,300$ with a retained earnings of $$415,800$ for the period ending $12/31/24.$ What will be the consolidated balance of each of these accounts?