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E,F,G, and H only. Thank you. Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2019. Miller paid $848,000 in cash

E,F,G, and H only. Thank you. image text in transcribed
Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2019. Miller paid $848,000 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 $212,000 both before and after Miller's acquisition On January 1, 2019. Taylor reported a book value of $492,000 (Common Stock - $246,000; Additional Paid-In Capital - $73,800 Retained Earnings = $172,200). Several of Taylor's buildings that had a remaining life of 20 years were undervalued by a total of $65,600 During the next three years. Taylor reports income and declares dividends as follows: Year 2019 2020 2021 Net Income $57, 700 75,600 84,500 Dividenda $ 9,400 12,700 17,000 . 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, 2019, what amount of goodwill should be recognized? c. If a consolidation worksheet is prepared as of January 1, 2019, what Entry Sand Entry A should be included? d. On the separate financial records of the parent company, what amount of investment income would be reported for 2019 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, 2021, 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. 1. As of December 31, 2020, Miller's Buildings account on its separate records has a balance of $680,000 and Taylor has a similar account with a $255,000 balance. What is the consolidated balance for the Buildings account? g. What is the balance of consolidated goodwill os of December 31, 20217 h. Assume that the parent company has been applying the equity method to this investment. On December 31, 2021, the separate financial statements for the two companies present the following information: . . . Common stock Additional paid-in capital Retnined earnings, 12/31/21 Hiller Company 5 425,000 230,000 527,000 Taylor Company $ 246,000 73,800 352,000 What will be the consolidated balance of each of these accounts

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