Miller Company acquired an $80$ percent interest in Taylor Company on January $1,2022.$ Miller paid $$896,000$ 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 $$224,000$ both before and after Miller's acquisition.

On January $1,2022,$ Taylor reported a book value of $$582,000($Common Stock $=$$$291,000$; Additional Paid$-$In Capital $=$$$87,300$;

Retained Earnings $=$$$203,700).$ Several of Taylor's buildings that had a remaining life of $20$ years were undervalued by a total of

$$77,700.$

During the next three years, Taylor reports income and declares dividends as follows:

Required:

Determine the appropriate answers for each of the following questions:

a$.$ What amount of excess depreciation expense should be recognized in the consolidated financial statements for the initial

years following this acquisition?

b$.$ If a consolidated balance sheet is prepared as of January $1,2022,$ what 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 financial records of the parent company, what amount of investment income would be reported for $2022$

under each of the following accounting methods?

The equity method.

The partial equity method.

The initial value method.

e$.$ On the parent company's separate financial records, what would be the December $31,2024,$ 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.

f$.$ As of December $31,2023,$ Miller's Buildings account on its separate records has a balance of $$796,000$ and Taylor has a simila

account with a $$298,500$ balance. What is the consolidated balance for the Buildings account?

g$.$ What is the balance of consolidated goodwill as of December $31,2024?$

h$.$ Assume that the parent company has been applying the equity method to this investment. On December $31,2024,$ the

separate financial statements show that Miller had a common stock of $$497,500$ and additional paid$-$in capital of $$278,600$ wit

a retained earnings of $$616,900$ for the period ending $\frac{12}{31}\frac{?}{24}$ and Taylor had a common stock of $$291,000$ and additional

paid$-$in$-$capital of $$87,300$ with a retained earnings of $$415,800$ for the period ending $\frac{12}{31}\frac{?}{24}.$ What will be the consolidated

balance of each of these accounts?

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

a$.$ What amount of excess depreciation expense should be recognized in the consolidated financial statements for the initial

years following this acquisition?

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

a$.$ Amount of excess depreciation

b$.$ Amount of goodwillMiller Company acquired an $80$ percent interest in Taylor Company on January $1,2022.$ Miller paid $$896,000$ 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 $$224,000$ both before and after Miller's acquisition.

On January $1,2022,$ Taylor reported a book value of $$582,000($Common Stock $=$$$291,000$; Additional Paid$-$In Capital $=$$$87,300$;

Retained Earnings $=$$$203,700).$ Several of Taylor's buildings that had a remaining life of $20$ years were undervalued by a total of

$$77,700.$

During the next three years, Taylor reports income and declares dividends as follows:

Required:

Determine the appropriate answers for each of the following questions:

a$.$ What amount of excess depreciation expense should be recognized in the consolidated financial statements for the initial

years following this acquisition?

b$.$ If a consolidated balance sheet is prepared as of January $1,2022,$ what 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 financial records of the parent company, what amount of investment income would be reported for $2022$

under each of the following accounting methods?

The equity method.

The partial equity method.

The initial value method.

e$.$ On the parent company's separate finan