ONLY NEED E,F, G AND H
Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2019. Miller paid $952,000 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 $238,000 both before and after Miller's acquisition. On January 1, 2019, Taylor reported a book value of $546,000 (Common Stock = $273,000; Additional Paid-In Capital = $81,900; Retained Earnings = $191,100). Several of Taylor's buildings that had a remaining life of 20 years were undervalued by a total of $72,800 During the next three years, Taylor reports income and declares dividends as follows: Year 2019 2020 2021 Net Income $63,900 82,800 92,000 Dividends $ 9,200 13,800 18,400 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, 2019, what amount of goodwill should be recognized? 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 company's 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, Miller's Buildings account on its separate records has a balance of $736,000 and Taylor has a similar account with a $276,000 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: Common stock Additional paid-in capital Retained earnings, 12/31/21 Miller Company $ 460,000 257,600 570,400 Taylor Company $ 273,000 81,900 388,400 What will be the consolidated balance of each of these accounts? Req A and B Reqc Reg D and E Req F and G Reg H 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? e. On the parent company's 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? Show less d. Investment Income e. Investment Balance The equity method The partial equity method The initial value method Complete this question by entering your answers in the tabs below. Req A and B ReqC Reg D and E Req F and G ReqH f. As of December 31, 2020, Miller's Buildings account on its separate records has a balance of $736,000 and Taylor has a similar account with a $275,000 balance. What is the consolidated balance for the Buildings account? g. What is the balance of consolidated goodwill as of December 31, 2021? f. Consolidated balance g. Consolidated balance Req A and B Reqc Reg D and E Reg F and G ReqH 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 $ 460,000 $ 273,000 Additional paid-in capital 257,600 81,900 Retained earnings, 12/31/21 570,400 388,400 What will be the consolidated balance of each of these accounts? Show less A Common stock Additional paid-in capital notoinod morning 44
