Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2016. Miller paid $848,000 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 $212,000 both before and after Miller's acquisition. On January 1, 2016, Taylor reported a book value of $492.000 (Common Stock- $246,000; Additional Paid-In Capital $73,800 Retained Earnings $172,200). Several of Taylor's buildings that had a remaining life of 20 years were undervalued by a total of $65,600 During the next three years, Taylor reports income and declares dividends as follows 2016 $ 57,700 75,600 84,600 8,40 12,760 17,000 2017 2018 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 e separate finacial 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 Company account under each of the following accounting methods? Investment in Taylor 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 $680,000 and Taylor has a similar account with a $255,000 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 Taylor Company Miller Common stock Additional paid-in capital Retained earnings, 12/31/18 s 425,000 246,000 238,000 27,000 73,800 352,000 What will be the consolidated balance of each of these accounts Miller Company s 425,000 246,000 238,000 527,000 Taylor Company Common stock Additional paid-in capital Retained earnings, 12/31/18 73,800 352,000 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 Req C ) Req A and B | || Req D and E Req F and G 11 Req C Req H If a consolidation worksheet is prepared as of January 1, 2016, what Entry S and Entry A should be inc view transaction list Consolidation Worksheet Entries 2 Prepare entry S Note: Enter debits before credits. Credit Event Accounts Debit January 01, 2016 ||Req D and El Req F and Gil Req H Req A and BII Req If a consolidation worksheet is prepared as of January 1, 2016, what Entry S and Entry A should be view transaction list Consolidation Worksheet Entries 2 Prepare entry A Note: Enter debits before credits. Debit Credit Accounts Event January 01, 2016 Complete this question by entering your answers in the tabs below Reg A and B Req c Req D and E Req Fand G Req H d. On the under each of the following accounting methods? separate financial records of the parent company, what amount of investment income would be reported for 2016 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 e. d. Investment Investment Income Balance The equity method The partial equity methood The initial value method 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 $680,000 and Taylor has a similar account with a $255,000 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 g Consolidated balance K Req D and E ReqH > 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 Fand G Req 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: Taylor Company 246,000 73,800 352,000 Miller Company 425,000 238,000 Common stock Additional paid-in capital Retained earnings, 12/31/18 527,000 What will be the consolidated balance of each of these accounts? Show lessA Common stock Additional paid-in capital Retained earnings, 12/31/18 Req F and G