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

Toyior to acqulre these sharea. In soddition, the remsining $20$ percent of Toyiar shsres continued to trade at a total value of $$200,000$

both before snd atier Miller's acqu'sition.

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

Retsined Esrnings $=$$$235,900).$ Several of Tsylor's buldings that had $s$ remsining lffe of $20$ years were undervalued by a totsl of

$$99,900$

During the next three years, Tsylor reports Incame snd declares dividends as followe:

Required:

Determine the sppropriate answers for each of the following questlana:

a$.$ Whst amount of excess depreclation expense should be recognized in the consalidated financisl statements for the initisl years

following this acqulaition?

b$.$ If s consolidated bslsnce sheet is prepared as of January $1,2022,$ whst amount of goodwill should be recognized?

c$.$ If a consolidation worksheet is prepared as of January $1,2022,$ what Entry S and Entry A should be included?

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

esch of the following accounting methods?

The equity methad.

The partial equity method.

The initisl value method.

e$.$ On the parent compsny's separate financial records, what would be the December $31,2024,$ bslance for the Investment in Toylor

Company sccount under esch of the follawing sccounting methods?

The equTy methad.

The partial equity method.

The initial value method.

f$.$ As of December $31,2023,$ Miler's Buldings account an its separate records has a balance of $$932,000$ and Tayior has a similsr

account with a $$349,500$ bolance. What is the cansoldsted balance for the Bulding: account?

What is the balance of consoldated goodwill as of December $31,2024?$

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

finsnclal statements show that Willer had a common stock of $$592,500$ and additionsl paid$-$in capial of $$326,200$ with a retsined

esmings of $$722,300$ for the perlad ending $12,\frac{31}{24}$ and Tsylor had a cammon stock of $$337,000$ and additional poid$-$in$-$csp itsl of

$$101,100$ with s retained earnings of $$492,100$ for the period ending $\frac{12\mathrm{.}31}{24}.$ What will be the consolidated bslsnce of each of these

accounts?

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

foem $F$ and $G$

a$.$What amount of excess deprecistion expense should be resognized in the consalidated financial statements for the initial

years fallowing this acquation?

b$.$ If a consolldated balance sheet is prepared as of January $1,2022,$ what amount of qoodwill should be recognized?