The following are selected accounts and balances for Mergaronite Company and Hill, Inc, as of December...

  

Transcribed Image Text:

The following are selected accounts and balances for Mergaronite Company and Hill, Inc, as of December 31, 2021. Several of Mergaronite's accounts have been omitted. Credit balances are indicated by parentheses. Dlvidends were declared and paid in the same period. Mergaronite $ (602,000) S (240,000) 260,000 120,000 Revenues 114,000 44,000 Coet of gooda sold Depreciation expense Investnent income Retained earnings, 1/1/21 Dividends deciared NA (502,000) 44,000 562,000 94,000 140,000 240,000 (320,000) (36,000) (908,000) NA (892,000) 120,000 200,000 318,000 500,000 194,000 (390,000) (294,000) (54,000) Current ASsets Land muildings (net) Equipnent (net) Liabilitien Conmon atock Additional paid-in eapital Assume that Mergaronite acquired Hll on January 1, 2017, by issuing 7,600 shares of common stock having a par value of $10 per share but a fair value of $100 each. On January 1, 2017, HIl's land was undervalued by $19,800, its buldings were overvalued by $29,200, and equipment was undervalued by $61,B00. The buldings had a 10-year remaining life; the equipment had a 5-year remaining ife. A customer list with an appraised value of $94,000 was developed internally by Hill and was estimated to have a 20- year remaining useful life. a. Determine the December 31, 2021, consolidated totals for the following accounts: b. In requirement (a), can the consolidated totals be determined without knowing which method the parent used to account for the subsidiary? c. If the parent uses the equity method, what consolidation entries would be used on a 2021 worksheet? Complete this question by entering your answers in the tabs below. Required A Required Required C Determine the December 31, 2021, consolidated totals for the following accounts: (Input all amounts as positive values.) Consolidated Totals Revenues Cont of goods sold Depreciation expense Amortization expense Buildings Equipment Customer list Common stock Additional paid-in capital Red A Required B > The following are selected accounts and balances for Mergaronite Company and Hill, Inc, as of December 31, 2021. Several of Mergaronite's accounts have been omitted. Credit balances are indicated by parentheses. Dlvidends were declared and paid in the same period. Mergaronite $ (602,000) S (240,000) 260,000 120,000 Revenues 114,000 44,000 Coet of gooda sold Depreciation expense Investnent income Retained earnings, 1/1/21 Dividends deciared NA (502,000) 44,000 562,000 94,000 140,000 240,000 (320,000) (36,000) (908,000) NA (892,000) 120,000 200,000 318,000 500,000 194,000 (390,000) (294,000) (54,000) Current ASsets Land muildings (net) Equipnent (net) Liabilitien Conmon atock Additional paid-in eapital Assume that Mergaronite acquired Hll on January 1, 2017, by issuing 7,600 shares of common stock having a par value of $10 per share but a fair value of $100 each. On January 1, 2017, HIl's land was undervalued by $19,800, its buldings were overvalued by $29,200, and equipment was undervalued by $61,B00. The buldings had a 10-year remaining life; the equipment had a 5-year remaining ife. A customer list with an appraised value of $94,000 was developed internally by Hill and was estimated to have a 20- year remaining useful life. a. Determine the December 31, 2021, consolidated totals for the following accounts: b. In requirement (a), can the consolidated totals be determined without knowing which method the parent used to account for the subsidiary? c. If the parent uses the equity method, what consolidation entries would be used on a 2021 worksheet? Complete this question by entering your answers in the tabs below. Required A Required Required C Determine the December 31, 2021, consolidated totals for the following accounts: (Input all amounts as positive values.) Consolidated Totals Revenues Cont of goods sold Depreciation expense Amortization expense Buildings Equipment Customer list Common stock Additional paid-in capital Red A Required B >

Answer rating: 100% (QA)

A Determine the December 31 2018 consolidated totals for the following accounts Particulars Amount Exaplanation Revenue 842000 602000 240000 add Paren... View the full answer