Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2019. Miller paid $800,000 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 $200,000 both before and after Millers acquisition.

On January 1, 2019, Taylor reported a book value of $674,000 (Common Stock = $337,000; Additional Paid-In Capital = $101,100; Retained Earnings = $235,900). Several of Taylors buildings that had a remaining life of 20 years were undervalued by a total of $89,800.

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

Year Net Income Dividends

2019 $ 79,000 $ 11,500

2020 103,500 17,400

2021 115,900 23,300

Determine the appropriate answers for each of the following questions:

What amount of excess depreciation expense should be recognized in the consolidated financial statements for the initial years following this acquisition?

If a consolidated balance sheet is prepared as of January 1, 2019, what amount of goodwill should be recognized?

If a consolidation worksheet is prepared as of January 1, 2019, what Entry S and Entry A should be included?

On the separate financial records of the parent company, what amount of investment income would be reported for 2019 under each of the following accounting methods?

The equity method.

The partial equity method.

The initial value method.

On the parent companys separate financial records, what would be the December 31, 2021, 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.

As of December 31, 2020, Millers Buildings account on its separate records has a balance of $932,000 and Taylor has a similar account with a $349,500 balance. What is the consolidated balance for the Buildings account?

What is the balance of consolidated goodwill as of December 31, 2021?

Assume that the parent company has been applying the equity method to this investment. On December 31, 2021, the separate financial statements for the two companies present the following information:

Miller Company Taylor Company

Common stock $ 582,500 $ 337,000

Additional paid-in capital 326,200 101,100

Retained earnings, 12/31/21 722,300 482,100

What will be the consolidated balance of each of these accounts?

Prepare entry A.
Reg A and B Reqc Reg D and E Reg F and G ReqH 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, 2019, what amount of goodwill should be recognized? a. Amount of excess depreciation b. Amount of goodwill Req A and B Reqc Reg D and E Req F and G Reg H If a consolidation worksheet is prepared as of January 1, 2019, what Entry S and Entry A should be included? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries 1 2 > Prepare entry S. d. On the separate financial records of the parent company, what amount of investment income would be reported for 2019 under each of the following accounting methods? e. On the parent company's separate financial records, what would be the December 31, 2021, balance for the Investment in Taylor Company account under each of the following accounting methods? Show less A d. Investment Income e. Investment Balance The equity method The partial equity method The initial value method f. As of December 31, 2020, Miller's Buildings account on its separate records has a balance of $932,000 and Taylor has a similar account with a $349,500 balance. What is the consolidated balance for the Buildings account? g. What is the balance of consolidated goodwill as of December 31, 2021? f. Consolidated balance g. Consolidated balance Req A and B Reqc Req D and E Reg F and G Reg H Assume that the parent company has been applying the equity method to this investment. On December 31, 2021, the separate financial statements for the two companies present the following information: Common stock Additional paid-in capital Retained earnings, 12/31/21 Miller Company $ 582,500 326,200 722,300 Taylor Company $ 337,000 101,100 482,100 What will be the consolidated balance of each of these accounts? Show less Common stock Additional paid-in capital Retained earnings, 12/31/21

Question

Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2019. Miller paid $800,000 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 $200,000 both before and after Millers acquisition.

On January 1, 2019, Taylor reported a book value of $674,000 (Common Stock = $337,000; Additional Paid-In Capital = $101,100; Retained Earnings = $235,900). Several of Taylors buildings that had a remaining life of 20 years were undervalued by a total of $89,800.

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

Year	Net Income		Dividends
2019	$	79,000	$	11,500
2020		103,500		17,400
2021		115,900		23,300

Determine the appropriate answers for each of the following questions:

What amount of excess depreciation expense should be recognized in the consolidated financial statements for the initial years following this acquisition?
If a consolidated balance sheet is prepared as of January 1, 2019, what amount of goodwill should be recognized?
If a consolidation worksheet is prepared as of January 1, 2019, what Entry S and Entry A should be included?

On the separate financial records of the parent company, what amount of investment income would be reported for 2019 under each of the following accounting methods?

The equity method.
The partial equity method.
The initial value method.

On the parent companys separate financial records, what would be the December 31, 2021, 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.

As of December 31, 2020, Millers Buildings account on its separate records has a balance of $932,000 and Taylor has a similar account with a $349,500 balance. What is the consolidated balance for the Buildings account?
What is the balance of consolidated goodwill as of December 31, 2021?
Assume that the parent company has been applying the equity method to this investment. On December 31, 2021, the separate financial statements for the two companies present the following information:

	Miller Company		Taylor Company
Common stock	$	582,500	$	337,000
Additional paid-in capital		326,200		101,100
Retained earnings, 12/31/21		722,300		482,100

What will be the consolidated balance of each of these accounts?

image text in transcribed Prepare entry A.

Reg A and B Reqc Reg D and E Reg F and G ReqH 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, 2019, what amount of goodwill should be recognized? a. Amount of excess depreciation b. Amount of goodwill Req A and B Reqc Reg D and E Req F and G Reg H If a consolidation worksheet is prepared as of January 1, 2019, what Entry S and Entry A should be included? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries 1 2 > Prepare entry S. d. On the separate financial records of the parent company, what amount of investment income would be reported for 2019 under each of the following accounting methods? e. On the parent company's separate financial records, what would be the December 31, 2021, balance for the Investment in Taylor Company account under each of the following accounting methods? Show less A d. Investment Income e. Investment Balance The equity method The partial equity method The initial value method f. As of December 31, 2020, Miller's Buildings account on its separate records has a balance of $932,000 and Taylor has a similar account with a $349,500 balance. What is the consolidated balance for the Buildings account? g. What is the balance of consolidated goodwill as of December 31, 2021? f. Consolidated balance g. Consolidated balance Req A and B Reqc Req D and E Reg F and G Reg H Assume that the parent company has been applying the equity method to this investment. On December 31, 2021, the separate financial statements for the two companies present the following information: Common stock Additional paid-in capital Retained earnings, 12/31/21 Miller Company $ 582,500 326,200 722,300 Taylor Company $ 337,000 101,100 482,100 What will be the consolidated balance of each of these accounts? Show less Common stock Additional paid-in capital Retained earnings, 12/31/21