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. Dividends were declared and paid in the same period. Mergaronite Hill Revenues $ (592,000 ) $ (248,000 ) Cost of goods sold 270,000 88,000 Depreciation expense 112,000 46,000 Investment income NA NA Retained earnings, 1/1/21 (906,000 ) (592,000 ) Dividends declared 124,000 38,000 Current assets 182,000 690,000 Land 294,000 94,000 Buildings (net) 500,000 156,000 Equipment (net) 190,000 244,000 Liabilities (394,000 ) (300,000 ) Common stock (316,000 ) (46,000 ) Additional paid-in capital (54,000 ) (870,000 ) Assume that Mergaronite acquired Hill on January 1, 2017, by issuing 7,400 shares of common stock having a par value of $10 per share but a fair value of $100 each. On January 1, 2017, Hill’s land was undervalued by $18,200, its buildings were overvalued by $29,800, and equipment was undervalued by $59,200. The buildings had a 10-year remaining life; the equipment had a 5-year remaining life. A customer list with an appraised value of $96,000 was developed internally by Hill and was estimated to have a 20-year remaining useful life. Determine the December 31, 2021, consolidated totals for the following accounts:
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. Dividends were declared and paid in the same period.
Mergaronite | Hill | |||||||
Revenues | $ | (592,000 | ) | $ | (248,000 | ) | ||
Cost of goods sold | 270,000 | 88,000 | ||||||
112,000 | 46,000 | |||||||
Investment income | NA | NA | ||||||
(906,000 | ) | (592,000 | ) | |||||
Dividends declared | 124,000 | 38,000 | ||||||
Current assets | 182,000 | 690,000 | ||||||
Land | 294,000 | 94,000 | ||||||
Buildings (net) | 500,000 | 156,000 | ||||||
Equipment (net) | 190,000 | 244,000 | ||||||
Liabilities | (394,000 | ) | (300,000 | ) | ||||
Common stock | (316,000 | ) | (46,000 | ) | ||||
Additional paid-in capital | (54,000 | ) | (870,000 | ) | ||||
Assume that Mergaronite acquired Hill on January 1, 2017, by issuing 7,400 shares of common stock having a par value of $10 per share but a fair value of $100 each. On January 1, 2017, Hill’s land was undervalued by $18,200, its buildings were overvalued by $29,800, and equipment was undervalued by $59,200. The buildings had a 10-year remaining life; the equipment had a 5-year remaining life. A customer list with an appraised value of $96,000 was developed internally by Hill and was estimated to have a 20-year remaining useful life.
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Determine the December 31, 2021, consolidated totals for the following accounts:
Determine the December 31, 2021, consolidated totals for the following accounts: (Input all amounts as positive values.)
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I dont understand how to calculate the Investment Income in the entries
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