The following are selected accounts and balances for Jonah Company and Hill, Incorporated, as of December...

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The following are selected accounts and balances for Jonah Company and Hill, Incorporated, as of December 31, 2024. Several of Jonah's accounts have been omitted. Credit balances are Indicated by parentheses. Dividends were declared and paid in the same period. Revenues Account Cost of goods sold Depreciation expense Investment income Jonah $ (608,000) 262,000 104,000 Sot given (914,000) $ (242,000) 102,000 50,000 Not given (612,000) Retained earnings, 1/1/24 Dividenda declared Current assets Land Buildings (not) Equipment (not) Liabilition Common stock Additional paid-in capital 140,000 42,000 196,000 660,000 280,000 100,000 480,000 120.000 216.000 250,000 (380,000) (304,000) (302,0001 (42,000) 40-0001 (856,000) Assume that Jonah acquired Hill on January 1, 2020, 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, 2020, Hill's land was undervalued by $18,600, Its buildings were overvalued by $30,000, and equipment was undervalued by $59,400. The buildings had a 10-year remaining life; the equipment had a 5-year remaining life. A proprietary database with an appraised value of $92,000 was developed Internally by Hill and was estimated to have a 20 year remaining useful life. Required: a. Determine the December 31, 2024, consolidated totals for the following accounts: Revenues Cost of goods sold Depreciation expense Amortization expense Buildings Equipment Database Common stock Additional paid in capital b. In requirement part (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 2024 worksheet? The following are selected accounts and balances for Jonah Company and Hill, Incorporated, as of December 31, 2024. Several of Jonah's accounts have been omitted. Credit balances are Indicated by parentheses. Dividends were declared and paid in the same period. Revenues Account Cost of goods sold Depreciation expense Investment income Jonah $ (608,000) 262,000 104,000 Sot given (914,000) $ (242,000) 102,000 50,000 Not given (612,000) Retained earnings, 1/1/24 Dividenda declared Current assets Land Buildings (not) Equipment (not) Liabilition Common stock Additional paid-in capital 140,000 42,000 196,000 660,000 280,000 100,000 480,000 120.000 216.000 250,000 (380,000) (304,000) (302,0001 (42,000) 40-0001 (856,000) Assume that Jonah acquired Hill on January 1, 2020, 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, 2020, Hill's land was undervalued by $18,600, Its buildings were overvalued by $30,000, and equipment was undervalued by $59,400. The buildings had a 10-year remaining life; the equipment had a 5-year remaining life. A proprietary database with an appraised value of $92,000 was developed Internally by Hill and was estimated to have a 20 year remaining useful life. Required: a. Determine the December 31, 2024, consolidated totals for the following accounts: Revenues Cost of goods sold Depreciation expense Amortization expense Buildings Equipment Database Common stock Additional paid in capital b. In requirement part (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 2024 worksheet?

Answer rating: 100% (QA)

Answer a To determine the December 31 2024 consolidated totals for the given accounts we need to fir... View the full answer