am . 104. Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2022. Miller paid$920,000 in cash to the owners of Taylor to acquire these shares. In addition, the remaining 20 percent ofTaylor shares continued to trade at a total value of $230,000 both before and after Miller's acquisition.On January 1, 2022, Taylor reported a book value of $564,000 (Common Stock = $282,000; AdditionalPaid-In Capital = $84,600: Retained Earnings = $197,400). Several of Taylor's buildings that had a remaininglife of 20 years were undervalued by a total of $75,100.During the next three years, Taylor reports income and declares dividends as follows:YearDividends2022$9.50014.30019,10020232024Net Income$ 65,80085.50095.300Required:Determine the appropriate answers for each of the following questions:a. What amount of excess depreciation expense should be recognized in the consolidated financialstatements for the initial years following this acquisition?b. If a consolidated balance sheet is prepared as of January 1, 2022, what amount of goodwill should berecognized?c. If a consolidation worksheet is prepared as of January 1, 2022, what Entry S and Entry A should beincluded?d. On the separate financial records of the parent company, what amount of investment income would bereported for 2022 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, 2024, balance forthe Investment in Taylor Company account under each of the following accounting methods?• The equity method.The partial equity method.The initial value method.Complete this question by entering your answers in the tabs below.Answer is complete but not entirely correct.Rag A and B Rug C Reg D and Ed. On the separate financial records of the parent company, what amount of investment income would be reported for 2022under each of the following accounting methods?e. On the parent company's separate financial records, what would be the December 31, 2024, balance for the Investment inTaylor Company account under each of the following accounting methods?Show lessThe aquity methodThe partial equity methodThe initial value methodd. Investment e InvestmentIncomeBalancesS$49,636 $ 1,065,36852,640 $ 1,108,258900,0007,600$< Req CReq D and E >

Entry S and Entry A are usually included in a consolidation worksheet generated as of January 1,…

Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2022. Miller psid $920,000 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 $230,000 both before and after Miller's acquisition. On January 1, 2022, Taylor reported a book value of $564,000 (Common Stock = $282,000; Additional Paid-In Capital = $84,600; Retained Earnings = $197,400). Several of Taylor's buildings that had a remaining life of 20 years were undervalued by a total of $75,100. During the next three years, Taylor reports income and declares dividends as follows: Year Net Income 2022 $ 65,800 2023 85,500 2024 95.300 Dividends $9.500 14.300 19,100 Required: 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 scquisition? b. If a consolidated balance sheet is prepared as of January 1, 2022, what amount of goodwill should be recognized? w Ca