You are working for a US-based company and have been tasked with integrating an acquisition in Japan (based in Osaka). Prior to this acquisition your company had only a representative office based in Tokyo. What are the four key elements of Human Relations Management and for each element list at least one criterion relevant to your firm’s future success in this marketplace. Where would you establish the administrative offices for the acquired company (explain the rationale for your decision).

Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2016. Miller paid $896,000 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 $224,000 both before and after Miller’s acquisition.On January 1, 2016, Taylor reported a book value of $626,000 (Common Stock = $313,000; Additional Paid-In Capital = $93,900; Retained Earnings = $219,100). Several of Taylor’s buildings that had a remaining life of 20 years were undervalued by a total of $83,400.During the next three years, Taylor reports income and declares dividends as follows:YearNet IncomeDividends2016$73,100$10,500201794,50015,8002018105,30021,100Determine 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.E. On the parent company’s separate financial records, what would be the December 31, 2018, balance for the Investment in Taylor Company account under each of the following accounting methods?The equity method.The partial equity method.The initial value method.F. As of December 31, 2017, Miller’s Buildings account on its separate records has a balance of $844,000 and Taylor has a similar account with a $316,500 balance. What is the consolidated balance for the Buildings account?G. What is the balance of consolidated goodwill as of December 31, 2018?H. Assume that the parent company has been applying the equity method to this investment. On December 31, 2018, the separate financial statements for the two companies present the following information:Miller CompanyTaylor CompanyCommon stock$527,500$313,000Additional paid-in capital295,40093,900Retained earnings, 12/31/18654,100444,600d. 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?e. On the parent company’s separate financial records, what would be the December 31, 2018, balance for the Investment in Taylor Company account under each of the following accounting methods?d. Investment Incomee. Investment BalanceThe equity methodThe partial equity methodThe initial value methodf. As of December 31, 2017, Miller’s Buildings account on its separate records has a balance of $844,000 and Taylor has a similar account with a $316,500 balance. What is the consolidated balance for the Buildings account?g. What is the balance of consolidated goodwill as of December 31, 2018?f.Consolidated balanceg.Consolidated balance H. Assume that the parent company has been applying the equity method to this investment. On December 31, 2018, the separate financial statements for the two companies present the following information:Miller CompanyTaylor Company Common stock$527,500$313,000 Additional paid-in capital295,40093,900 Retained earnings, 12/31/18654,100444,600What will be the consolidated balance of each of these accounts?Common stockAdditional paid-in capitalRetained earnings, 12/31/18

Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2016. Miller paid $896,000 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 $224,000 both before and after Miller’s acquisition.

On January 1, 2016, Taylor reported a book value of $406,000 (Common Stock = $203,000; Additional Paid-In Capital = $60,900; Retained Earnings = $142,100). Several of Taylor’s buildings that had a remaining life of 20 years were undervalued by a total of $54,200.

During the next three years, Taylor reports income and declares dividends as follows:

Determine the appropriate answers for each of the following questions:

What amount of excess depreciation expense should be recognized in the consolidated financial statements for the initial years following this acquisition?

If a consolidated balance sheet is prepared as of January 1, 2016, what amount of goodwill should be recognized?

If a consolidation worksheet is prepared as of January 1, 2016, what Entry S and Entry A should be included?

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.

On the parent company’s separate financial records, what would be the December 31, 2018, balance for the Investment in Taylor Company account under each of the following accounting methods?

The equity method.

The partial equity method.

The initial value method.

As of December 31, 2017, Miller’s Buildings account on its separate records has a balance of $556,000 and Taylor has a similar account with a $208,500 balance. What is the consolidated balance for the Buildings account?

What is the balance of consolidated goodwill as of December 31, 2018?

Assume that the parent company has been applying the equity method to this investment. On December 31, 2018, the separate financial statements for the two companies present the following information:

What will be the consolidated balance of each of these accounts?

Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2016. Miller paid $768,000 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 $192,000 both before and after Miller’s acquisition.

On January 1, 2016, Taylor reported a book value of $616,000 (Common Stock = $308,000; Additional Paid-In Capital = $92,400; Retained Earnings = $215,600). Several of Taylor’s buildings that had a remaining life of 20 years were undervalued by a total of $82,200.

During the next three years, Taylor reports income and declares dividends as follows:

Determine the appropriate answers for each of the following questions:

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

2. If a consolidated balance sheet is prepared as of January 1, 2016, what amount of goodwill should be recognized?

3. If a consolidation worksheet is prepared as of January 1, 2016, what Entry S and Entry A should be included?

4. 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.

5. On the parent company’s separate financial records, what would be the December 31, 2018, balance for the Investment in Taylor Company account under each of the following accounting methods?

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

6. As of December 31, 2017, Miller’s Buildings account on its separate records has a balance of $844,000 and Taylor has a similar account with a $316,500 balance. What is the consolidated balance for the Buildings account?

7. What is the balance of consolidated goodwill as of December 31, 2018?

8. Assume that the parent company has been applying the equity method to this investment. On December 31, 2018, the separate financial statements for the two companies present the following information:

What will be the consolidated balance of each of these accounts?

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:

Determine the appropriate answers for each of the following questions:

As of December 31, 2017, Miller’s Buildings account on its separate records has a balance of $1,004,000 and Taylor has a similar account with a $376,500 balance. What is the consolidated balance for the Buildings account? What is the balance of consolidated goodwill as of December 31, 2018?

Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2016. 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, 2016, Taylor reported a book value of $464,000 (Common Stock = $232,000; Additional Paid-In Capital = $69,600; Retained Earnings = $162,400). Several of Taylor’s buildings that had a remaining life of 20 years were undervalued by a total of $61,900. During the next three years, Taylor reports income and declares dividends as follows: Year Net Income Dividends 2016 $ 54,400 $ 7,800 2017 70,200 11,700 2018 78,000 15,600 Determine the appropriate answers for each of the following questions: What amount of excess depreciation expense should be recognized in the consolidated financial statements for the initial years following this acquisition? If a consolidated balance sheet is prepared as of January 1, 2016, what amount of goodwill should be recognized? If a consolidation worksheet is prepared as of January 1, 2016, what Entry S and Entry A should be included? 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. On the parent company’s separate financial records, what would be the December 31, 2018, balance for the Investment in Taylor Company account under each of the following accounting methods? The equity method. The partial equity method. The initial value method. As of December 31, 2017, Miller’s Buildings account on its separate records has a balance of $624,000 and Taylor has a similar account with a $234,000 balance. What is the consolidated balance for the Buildings account? What is the balance of consolidated goodwill as of December 31, 2018? Assume that the parent company has been applying the equity method to this investment. On December 31, 2018, the separate financial statements for the two companies present the following information: Miller Company Taylor Company Common stock $ 390,000 $ 232,000 Additional paid-in capital 218,400 69,600 Retained earnings, 12/31/18 483,600 329,900

On July 1, 2018, Boone Company acquired the following assets from Judge Company for $8,000,000:

Boone’s accountant was not sure how to value the assets, so he decided to simply expense everything and hope that no one would notice. During the annual external audit in January 2021, the new auditing firm discovered the error.

Boone’s policy regarding these types of fixed assets follows:

Prepare the entry(ies) that must be made to correct Boone’s accounting records with detailed works.

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:

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?

Prepare entry S.

Prepare entry A.

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.

e.     On the parent company’s separate financial records, what would be the December 31, 2018, balance for the Investment in Taylor Company account under each of the following accounting methods?

The equity method.

The partial equity method.

The initial value method.

f.       As of December 31, 2017, Miller’s Buildings account on its separate records has a balance of $1,004,000 and Taylor has a similar account with a $376,500 balance. What is the consolidated balance for the Buildings account?

g.     What is the balance of consolidated goodwill as of December 31, 2018?

h.     Assume that the parent company has been applying the equity method to this investment. On December 31, 2018, the separate financial statements for the two companies present the following information:

What will be the consolidated balance of each of these accounts?

Question 9

P Company acquired 75 percent of S Company on January 1, 2018 at book value. During 2018, S purchased inventory for $40,000 and sold it to P for $60,000. Of this amount, P reported $12,000 in ending inventory in 2018 and later sold it in 2019. In 2019, P sold inventory it had purchased for $35,000 to S for $50,000. S sold $45,000 of this inventory in 2019. In 2019, P reported stand-alone income of $870,000 and S reported total net income of $218,000.

1) Prepare the consolidation entries that related to intercompany sale of inventory for 2018.

2) Prepare the consolidation entries that related to intercompany sale of inventory for 2019.

3) Calculated consolidated net income AND income assigned to controlling shareholders in 2019.

13

1. On July 6, Windsor Company acquired the plant assets of Doonesbury Company, which had discontinued operations. The appraised value of the property is:

Windsor Company gave 12,500 shares of its $100 par value common stock in exchange. The stock had a market price of $168 per share on the date of the purchase of the property.

2. Windsor Company expended the following amounts in cash between July 6 and December 15, the date when it first occupied the building. (Prepare consolidated entry for all transactions below.)

3. On December 20, the company paid cash for equipment, $390,000, subject to a 2% cash discount, and freight on equipment of $15,750.

Prepare entries on the books of Windsor Company for these transactions. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places e.g. 58,971. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)