Chapter 4, Problem 34P

a.

To determine

Identify the amount of excess depreciation expense which should be recognized in the consolidated financial statements for the initial years following this acquisition.

b.

To determine

Find the amount of goodwill which should be recognized if a consolidated balance sheet is prepared as of January 1, 2016.

c.

To determine

Identify Entry S and Entry A which should be included if a consolidation worksheet is prepared as of January 1, 2016.

d.

To determine

Determine the amount of investment income which would be reported for 2016 under each of the following accounting methods:

• The equity method
• The partial equity method
• The initial value method

e.

To determine

Identify what would be the December 31, 2018, balance for the Investment in Company T Company account under each of the following accounting methods:

• The equity method
• The partial equity method
• The initial value method

f.

To determine

Find the consolidated balance for the Buildings account.

g.

To determine

Determine balance of consolidated goodwill as of December 31, 2018.

h.

To determine

Determine the consolidated balance of each of these accounts.