Miler Company acquired an $90$ percent interest in Toylar Compsny on January $1,2022.$ Miller poid $$900,000$ in cash to the owners of

Toyior to acqulre these shares. In suldition, the remsinling $20$ percent of Toyior shsres continued to trade at a total volue of $$200\mathrm{.}000$

both before snd after Miller's scqualtion.

Retsined Esrnings $-$$$235,900\%.$ Seversi of Tsylor's buldinga thst had s remsining life of $20$ yesra were undervalued by a totsl of

$$89,900.$

During the next three years, Tsylor reports Income snd declsres diviends ss followk:

Required:

Determine the sppropriate answers for each of the following questlons:

a$.$ What amount of excess depreciation expense should be recognized in the consolidoted finsncisi statements for the intisl years

following thls acqulation?

b$.$ If $s$ consolidated bslsnce sheet is prepared os of Jsnusry $1,2022$ whst amount of goodwil should be recognlzed?

c$.$ If s consolidation worksheet is prepsred as of January $1,2022,$ whst Entry S and Entry A should be lincluded?

d$.$ On the separate finsncisi records of the porent compony, what amount of lnvestment Income would be reported for $2022$ under

esch of the following sccounting methods?

The equity methad.

The partial equity method.

The initiol volue method.

e$.$ On the porent compsny's sepsrate finsncial records, what would be the December $31,2024,$ bslsnce for the Investment in Toylor

Company sccount under esch of the following sccounting methods?

$.$ The equity method.

The partial equity metiod.

The initisl va ue method.

$$ As af December $31,2023,$ Miler's Buldings account on its seporate records has a bolonce of $$932,000$ and Toylor has s similse

sccount with a $$349,500$ bolsnce. What ls the consoldsted balance for the Buldings sccount?

What ls the balance of consolidated goodwill ss of December $31,2024?$

h$.$ Assume thst the parent compsny hss been spplying the equity method to this investment On December $31,2024,$ the sepsrste

finsncial statements show that Miller has a common stock of $$592,500$ snd sddtionsl poid$-$in cap cal of $$326,200$ with $s$ retsined

esmings of $$722,300$ for the perlad eneling $\frac{12}{31}\frac{?}{24}$ snd Tsylor had a common stock of $$337,000$ and adivionsl poid$-$in$-$cspital of

$$101100$ with s retalned esmings of $$492,100$ for the period ending $\frac{12\mathrm{.}31}{24}.$ What will be the consolidated balsnce of each of these

accounts?

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

Acsume that the parert company has been applying the equty meshod to this investment. Co Decerrber $31,2024,$ the

separate finsondal statements show that Miler had a common stock of $$542,500$ and adcitionsl poid$-$in captal of $$326,200$

with a retained earnings of $$722,300$ for the period ending $\frac{12}{31}\frac{?}{24}$ and Taylor had a commcn stock of $$337,000$ and

addrional paid$-$ln$-$capical of $$101,100$ with a retained eamings of $$432,100$ for the period ending $12/31/24.$ What will be the

consolidated balance of esch of these acrounts?