Miler Compony acquired an $80$ percent Interest in Taylar Compsny on January $1,2022.$ Miller poid $$900,000$ in cash to the owners of

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

both before snd siter Miller's scqu'sition.

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

Retsined Earnings $-$$$235,900.$ Seversl of Tsylor's buld'ngs thst had s remsining life of $20$ years were undervalued by a totsl of

$$89,800.$

During the next three years, Tsylor reparts income snd declores dividends as followe:

Required:

Determine the sppropriate answers for each of the following questlona:

a$.$ What amount of excess depreclation expense should be recognized in the consalidated financlal statements for the intisl years

following thl acculaition?

b$.$ If s consolidated bsisnce sheet is prepared os of January $1,2022,$ what amount of goodiwill shauld be recognlzed?

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

d$.$ On the seporate finsncial records of the parent company, whst amount of Investment 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 separate finsncial records, what would be the December $31,2024,$ bslance for the Investment in Tsyior

Compsny sccount under each of the following sccounting methods?

The equty methad.

The partisl equity method.

The Initial value method.

f$.$ As of December $31,2023,$ Miller's Buldinge account on ta seporate records has a bolance of $$932,000$ and Tayior has a similsr

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

What is the bulance of consolidated goodwill ss of December $31,2024?$

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

financlal statements show that Miller had a common stock of $$592,500$ and additionsl paid$-$in capizal of $$326,200$ wth a retsined

esinings of $$722,300$ for the perlad ending $12/31/24$ snd Tsylor had a cammon stock of $$337,000$ and additionsl poid$-$in$-$cspitsl of

$$10,100$ with $s$ retained eamings of $$492,100$ for the period ending $1231,24.$ What will be the consolidated bslsnce of each of these

accounts?

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

a$.$ What amount of excess deprecistion expense should be recognized in the conanlidated financlal statements for the initial

yesrs following this acquation?

b$.$ If a consolidated balance sheet is prepored as of January $1,2022,$ what amount of qoodwill should be recoqnized?