Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2019

Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2019

Accounting

Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2019. Miller paid $744,000 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 $186,000 both before and after Miller's acquisition. On January 1, 2019, Taylor reported a book value of $530,000 (Common Stock = $265,000; Additional Paid-In Capital = $79,500; Retained Earnings = $185,500). Several of Taylor's buildings that had a remaining life of 20 years were undervalued by a total of $70,600. During the next three years, Taylor reports income and declares dividends as follows: 
Year 2019 2020 2021 Net Income $61,900 80,100 89,300 Dividends $ 8,900 13,400  17,900 
Requirements;

E) on the parent company's separate financial records, what would be the December 31,2021, balance for the investment Taylor company account under each of the following methods? -the equity method -the partial equity method -the initial value method F) As of December 31,2020, Millers building account on its separate records has a balance of $716,000 and Taylor has a similar account with a $268,500 balance. What is the consolidated balance for the buildings account? G) What is the balance of consolidated goodwill as of December 31,2021?

Option 1

Low Cost Option
Download this past answer in few clicks

4.95 USD

PURCHASE SOLUTION

Already member?


Option 2

Custom new solution created by our subject matter experts

GET A QUOTE