Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2019. Miller paid $776,000 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 $194,000 both before and after Millers acquisition.

On January 1, 2019, Taylor reported a book value of $580,000 (Common Stock = $290,000; Additional Paid-In Capital = $87,000; Retained Earnings = $203,000). Several of Taylors buildings that had a remaining life of 20 years were undervalued by a total of $77,400.

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

Year	Net Income			Dividends
2019	$	68,100		$	9,900
2020		89,100			14,900
2021		99,300			19,900

Determine the appropriate answers for each of the following questions:

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?

The equity method.

The partial equity method.

The initial value method.

E. 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.

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:

	Miller Company				Taylor Company
Common stock	$	497,500			$	290,000
Additional paid-in capital		278,600				87,000
Retained earnings, 12/31/21		616,900				414,800

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