Item $4$

Miller Company acquired an $80$ percent interest in Taylor Company on January $1,2019.$ Miller paid $$936,000$ in cash to the owners of Taylor to acquire these shares. In addition, the remaining $20$ percent of Taylor shares continued to trade at a total value of $$234,000$ both before and after Miller$$s acquisition.

On January $1,2019,$ Taylor reported a book value of $$462,000($Common Stock $=$ $$231,000$; Additional Paid$-$In Capital $=$ $$69,300$; Retained Earnings $=$ $$161,700).$ Several of Taylor$$s buildings that had a remaining life of $20$ years were undervalued by a total of $$61,600.$

During the next three years, Taylor reports income and declares dividends as follows:

Year Net Income Dividends

$2019$ $ $54,100$ $ $7,800$

$202070,20011,700$

$202178,00015,600$

Determine the appropriate answers for each of the following questions: Please show calculations and breakdown for each method. Thankyou!

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.

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.