Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2019. Miller paid $888,000 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 $222,000 both before and after Millers acquisition.

On January 1, 2019, Taylor reported a book value of $634,000 (Common Stock = $317,000; Additional Paid-In Capital = $95,100; Retained Earnings = $221,900). Several of Taylors buildings that had a remaining life of 20 years were undervalued by a total of $84,500.

c. If a consolidation worksheet is prepared as of January 1, 2019, 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 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.

f. As of December 31, 2020, Millers Buildings account on its separate records has a balance of $872,000 and Taylor has a similar account with a $327,000 balance. What is the consolidated balance for the Buildings account?

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

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	$	545,000			$	317,000
Additional paid-in capital		305,200				95,100
Retained earnings, 12/31/21		675,800				453,100

What will be the consolidated balance of each of these accounts

1	January 01, 2019	Common stock - Taylor	317,000
		Additional paid-in capital - Taylor	95,100
		Retained earnings - Taylor	221,900
		Investment in Taylor		507,200
		Noncontrolling interest in Taylor		126,800
2	January 01, 2019	Buildings	84,500
		Goodwill
		Investment in Taylor		380,800
		Noncontrolling interest in Taylor

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	$	545,000		$	317,000
Additional paid-in capital		305,200			95,100
Retained earnings, 12/31/21		675,800			453,100

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

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Common stock
Additional paid-in capital
Retained earnings, 12/31/21

	d. Investment Income	e. Investment Balance
The equity method	$56,060
The partial equity method	$59,440
The initial value method	$8,640