Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2016. Miller paid $720,000 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 $180,000 both before and after Miller's acquisition. On January 1, 2016, Taylor reported a book value of $774,000 (Common Stock-$387,000; Additional Paid-in Capital $116,100; Retained Earnings $270,900). Several of Taylor's buildings that had a remaining life of 20 years were undervalued by a total of $103,300 During the next three years, Taylor reports income and declares dividends as follows Year 2016 2017 2018 Dividends Net Income 90,900 118,800 132,600 13,200 19,900 26,600 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, 2016, what amount of goodwill should be recognized? c. If a consolidation worksheet is prepared as of January 1, 2016, 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 2016 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, 2018, balance for the Investment in Taylor Company account under each of the following accounting methods? e. On the parent company's separate financial records, what would be the December 31, 2018, 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, 2017, Miller's Buildings account on its separate records has a balance of $1,064,000 and Taylor has a similar account with a $399,000 balance. What is the consolidated balance for the Buildings account? g. What is the balance of consolidated goodwill as of December 31, 2018? h. Assume that the parent company has been applying the equity method to this investment. On December 31, 2018, the separate financial statements for the two companies present the following information Common stock Additional paid-in capital Retained earnings, 12/31/18 Miller Company 665,000 372,400 824,600 Taylor Company 387,000 116, 100 553,500 What will be the consolidated balance of each of these accounts? Complete this question by entering your answers in the tabs below. Req A and B Req C Req D and E Req F andG Req H 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, 2016, what amount of goodwill should be recognized? Miller Company Common stock Additional paid-in capital Retained earnings, 12/31/18 Taylor Company 665,000 387,000 116,100 553,500 372,400 824,600 What will be the consolidated balance of each of these accounts? 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 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, 2016, what amount of goodwill should be recognized? a. Amount of excess depreciation b. Amount of goodwill view transaction list Consolidation Worksheet Entries 2 Prepare entry S Note: Enter debits before credits Event Accounts Debit Credit January 01, 2016 Record entry Clear entry view general journal Consolidation Worksheet Entries Prepare entry A Note: Enter debits before credits. Event January 01 2016 Accounts Debit Credit Record entry Clear entry view general journal Complete this question by entering your answers in the tabs below. Req A and B Req CReq D and EReq F and G Req H d. On the separate financial records of the parent company, what amount of investment income would be reported for 2016 under each of the following accounting methods? e. On the parent company's separate financial records, what would be the December 31, 2018, balance for the Investment in Taylor Company account under each of the following accounting methods? Show less d. Investment Income Investment Balance The equity method The partial equity method The initial value method Req C Req F and G What will be the consolidated balance of each of these accounts? 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, 2017, Miller's Buildings account on its separate records has a balance of $1,064,000 and Taylor has a similar account with a $399,000 balance. What is the consolidated balance for the Buildings account? g. What is the balance of consolidated goodwill as of December 31, 2018? f. Consolidated balance Consolidated balance Req A and B Req C Req D and EReq F and GReq H Assume that the parent company has been applying the equity method to this investment. On December 31, 2018, the separate financial statements for the two companies present the following information: Common stock Additional paid-in capital Retained earnings, 12/31/18 Miller Company 665,000 372,400 824,600 Taylor Company 387,000 116,100 553,500 What will be the consolidated balance of each of these accounts? Show less Common stock Additional paid-in capital Retained earnings, 12/31/18