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Item 4 Miller Company acquired an 8 0 percent interest in Taylor Company on January 1 , 2 0 1 9 . Miller paid $

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 Millers 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 Taylors 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 companys 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.

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