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Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2016. Miller paid $856,000 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 $214,000 both before and after Miller's acquisition. On January 1, 2016, Taylor reported a book value of $752,000 (Common Stock = $376,000; Additional Paid-In Capital $112.800 Retained Earnings $263,200). Several of Taylor's buildings that had a remaining life of 20 years were undervalued by a total of $100,300 During the next three years, Taylor reports income and declares dividends as follows: Year 2016 2017 2018 Net Income $ 87,800 112,500 125,300 Dividends 12,500 18,800 25,100 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 acquisition? b. If a consolidated balance sheet is prepared as of January 1, 2016, what amount of goodwill should be recognized? C. If a consolidation worksheet is prepared as of January 1, 2016, what Entry S and Entry A should be included? d. On the separate financial records of the parent company, what amount of investment income would be reported for 2016 under each of the following accounting methods? The equity method The partial equity method . The initial value method

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