Refer to Page 65 Comprehensive Illustration Problem, assume all facts are the same except in Required a. Millers stock has a fair value of $30 per share

In the year subsequent to the acquisition (2021), Richmond generates an income of $80,000 and pays a dividend of $10,000.

Prepare the necessary journal entries for 2021. 5pts

What is the ending balance of Investment in Richmond Company as of 12/31/2021? 3pts

Comprehensive Illustration (Eutimatsd Tims: 45 to 65 Minuts) The following are the acoount balances of Mitler Company and Richmond Company as of December 31. The fair values of Richmond Company's assets and liabilities are also listed. Additional Information (not reflected in the preceding figures) - On December 31, Miller issues 50,000 shares of its $20 par value common stock for all of the outstanding shares of Richmond Company. - As part of the aoquisition agreement, Miller agrees to pay the former ommers of Richmond $250,000 if certain profit projections are realized orer the nest three years. Miller calculates the acquisition-date fair value of this contingency at $100,000. - In creating this combination, Miller pays $10,000 in stock issue costs and $20,000 in acoounting and legal fees. Required a. Miller's stock has a fair value of $32 per share. Using the aoquisition method: 1. Prepare the necessary journal entries if Miller dissolves Richmond so it is no longer a separate legal entity. 2. Assume instead that Richmond will retain separate legal incorporation and maintain its own acoounting systems. Prepare a workshest to consolidate the accounts of the two companies. b. If Miller's stock: has a fair value of $26 per share, describe how the consolidated balances would differ from the results in requirement (a)