Miller Company acquired an $80$ percent interest in Taylor Company on January $1,2022.$ Miller paid $$728,000$ 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 $$182,000$

both before and after Miller's acquisition.

On January $1,2022,$ Taylor reported a book value of $$556,000($Common Stock $=$$$278,000$; Additional Paid$-$In Capital $=$$$83,400$;

Retained Earnings $=$$$194,600).$ Several of Taylor's buildings that had a remaining life of $20$ years were undervalued by a total of

$$74,200.$

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 $$764,000$ and Taylor has a similar

account with a $$286,500$ 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 $$477,500$ and additional paid$-$in capital of $$267,400$ with a retained

earnings of $$592,100$ for the period ending $\frac{12}{31}\frac{?}{24}$ and Taylor had a common stock of $$278,000$ and additional paid$-$in$-$capital of

$$83,400$ with a retained earnings of $$397,800$ 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.

Req $D$ and $E$

Req $F$ and G

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

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Consolidation

Worksheet Entries

Prepare entry S$.$

Note: Enter debits before credits. If a consolidation worksheet is prepared as of January $1,2022,$ what Entry S and Entry A should be included?

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Consolidation

Worksheet Entries

$1$

Prepare entry A$.$

Note: Enter debits before credits. Complete this question by entering your answers in the tabs below.

Req A and B

Req $D$ and $E$

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?

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

Req A and $B$

Req C

Req $D$ and $E$

Req F and G

Req H

f$.$ As of December $31,2023,$ Miller's Buildings account on its separate records has a balance of $$764,000$ and Taylor has a

similar account with a $$286,500$ balance. What is the consolidated balance for the Buildings account?

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

f$.$ Consolidated balance for Buildings

g$.$ Consolidated goodwill