Problem $4-35($Algo$)($LO $4-2,4-3,4-5)$

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:

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:

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