Miler Company acquired an $80$ percent Interest in Taylar Compsny an January $1,2022.$ Miller poid $$800,000$ in cash to the owners of

Taylor to acquire these sharea. In sddition, the remsining $20$ percent of Tayiar shsres continued to trade at a total value of $$200,000$

both before snd siter Miller's acquisition.

On January $1,2022,$ Taylor reported s book value of $$674,000($Cammon Stock $=$$$337,000$; Adaltional Psid$-$In Capital $-$$$101,100$;

Retsined Esrnings $=$$$235,900.$ Seversl of Tsylor's buld'igs thst had $s$ remsining lfie of $20$ years were undervalued by a totsl of

$$89,800.$

During the next three years, Tsylor reparts Income snd declsres dividends as follaws:

Required:

Determine the sppropriate answers for each of the following queatlana:

a$.$ What amount of excess depreciation expense should be recognized in the consolidated financisl statements for the initisl years

following this acqulaition?

b$.$ If s consolidated bsisnce sheet is prepared os of Jonusry, $2022,$ whst amount of goodwill should be recognized?

c$.$ If s consolidation worksheet is prepared as af January $1,2022,$ what Entry $S$ and Entry A should be lincluded?

d$.$ On the seporate finsncial records of the parent compony, what amount of lnvestment Income would be reported for $2022$ under

esch of the following accounting methods?

The equity methad.

The partisl equity method.

The initial value method.

e$.$ On the parent compsny's seporate financlal records, what would be the December $31,2024,$ bslsnce for the Investment in Trylor

Compsny sccount under esch of the follawing sccounting methods?

The equity method.

The partial equity method.

The initial value method.

f$.$ As of December $31,2023,$ Miler's Buldings account on ts separate records has a bolance of $$932,000$ and Tayior has a similsr

account with a $$349,500$ bolance. What Is the consolidsted balance for the Bulding: sccount?

Whst is the balance of consoldated goodwill ss of December $31,2024?$

h$.$ Assume that the parent compsny has been spplying the equity method to this Investment. On December $31,2024,$ the seporate

finsncial statements show that Miller had a common stock of $$592,500$ snd additionsl paid$-$in capital of $$326,200$ with a retsined

earnings of $$722,300$ for the perlad ending $12,\frac{31}{24}$ and Tsylor had a common stock of $$337,000$ and addtionsl poid$-$in$-$cspltal of

$$101,00$ with a retained esmings of $$492,100$ for the period ending $\frac{1231}{24}.$ What will be the consolidated bslance of each of these

sccounts?

Complete this question by entering your answers in the tabs below.

Ricy a and $B$

Ricy D ard E

foor $F$ and $G$

d$.$ On the separate financial records of the parent company, what amaunt af investment income would be reported for $2022$

under esch of the following accounting methods?

e$.$ On the parent company's separate financial records, what wauld be the December $31,2024,$ balance for the Invertment in

Taylor Company account under each of the follawinq accounting methods?

Shaw less a