Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2016 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, 2016, Taylor reported a book value of $738,000 (Common Stock $369,000 Additional Paid In Capital $110,700 Retained Earnings $258,300) Several of Taylors buildings that had a remaining life of 20 years were undervalued by a total of $98,300 During the next three years, Taylor reports income and declares dividends as follows Year Net Income Dividends 2016 $ 86,200 $ 12,400 2017 111,600 18,700 2018 124,600 25,000 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, 2016, what amount of goodwill should be recognized If a consolidation worksheet is prepared as of January 1, 2016, 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 2016 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, 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 As of December 31, 2017, Millers Buildings account on its separate records has a balance of $1,000,000 and Taylor has a similar account with a $375,000 balance What is the consolidated balance for the Buildings account What is the balance of consolidated goodwill as of December 31, 2018 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

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Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2016. Miller paid $800,000 in cash to the owners of Taylor to

Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2016. 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, 2016, Taylor reported a book value of $738,000 (Common Stock = $369,000; Additional Paid-In Capital = $110,700; Retained Earnings = $258,300). Several of Taylors buildings that had a remaining life of 20 years were undervalued by a total of $98,300.

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

Year	Net Income		Dividends
2016	$	86,200	$	12,400
2017		111,600		18,700
2018		124,600		25,000

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, 2016, what amount of goodwill should be recognized?
If a consolidation worksheet is prepared as of January 1, 2016, 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 2016 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, 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.

As of December 31, 2017, Millers Buildings account on its separate records has a balance of $1,000,000 and Taylor has a similar account with a $375,000 balance. What is the consolidated balance for the Buildings account?
What is the balance of consolidated goodwill as of December 31, 2018?
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: