196,000
Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2022. Miller paid $784,000 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 $196,000 both before and after Miller’s acquisition.
On January 1, 2022, Taylor reported a book value of $768,000 (Common Stock = $384,000; Additional Paid-In Capital = $115,200;
During the next three years, Taylor reports income and declares dividends as follows:
Year | Net Income | Dividends |
---|---|---|
2022 | $ 90,200 | $ 13,100 |
2023 | 117,900 | 19,700 |
2024 | 131,300 | 26,300 |
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If a consolidation worksheet is prepared as of January 1, 2022, what Entry S and Entry A should be included?
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