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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. 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?
Expert Solution
PFA
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