Miller Company acquired an $80$ percent interest in Taylor Company on January $1,2022.$ Miller paid $$664,000$ 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 $$166,000$ both before and after Miller's acquisition.

On January $1,2022,$ Taylor reported a book value of $$600,000($Common Stock $-$ $$300,000$; Additional Paid$-$In Capital $-$ $$90,000$; Retained Earnings $-$ $$210,000).$

Several of Taylor's buildings that had a remaining life of $20$ years were undervalued by a total of $$$0,000.$

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

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 $$800,000$ and Taylor has a similar account with a $$300,000$ 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 for the two