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. Revenues Cost of goods sold Depreciation expense Investment income Retained earnings, 1/1/21 Dividends declared Current assets Land Buildings (net) Equipment (net) es Liabilities Common stock Additional paid-in capital Mergaronite Hill $ (594,000) $ (246,000) 266,000 104,000 NA 106,000 44,000 NA (888,000) (598,000) 140,000 36,000 210,000 696,000 316,000 94,000 510,000 142,000 212,000 240,000 (396,000) (310,000) (292,000) (38,000) (46,000) (922,000) Assume that Mergaronite acquired Hill on January 1, 2017, by issuing 6,600 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 $20,000, its buildings were overvalued by $31,000, and equipment was undervalued by $60,600. The buildings had a 10-year remaining life; the equipment had a 5-year remaining life. A customer list with an appraised value of $104,000 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? Saved Save & Exit Help Submit This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question olidation entries would be used on a 2021 worksheet? (If no entry is required required" in the first account field.) Accounts red B Required C Debit 598,000 ✓ Credit 38.000 ✓ 922,000 ✓ 1,558,000 20,000 12,120 83,200 18,600 96,720✓ 80,000 × 80,000 × 36,000 36,000✓ 12,000 x 5,200 3,000 x

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. Revenues Cost of goods sold Depreciation expense Investment income Retained earnings, 1/1/21 Dividends declared Current assets Land Buildings (net) Equipment (net) es Liabilities Common stock Additional paid-in capital Mergaronite Hill $ (594,000) $ (246,000) 266,000 104,000 NA 106,000 44,000 NA (888,000) (598,000) 140,000 36,000 210,000 696,000 316,000 94,000 510,000 142,000 212,000 240,000 (396,000) (310,000) (292,000) (38,000) (46,000) (922,000) Assume that Mergaronite acquired Hill on January 1, 2017, by issuing 6,600 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 $20,000, its buildings were overvalued by $31,000, and equipment was undervalued by $60,600. The buildings had a 10-year remaining life; the equipment had a 5-year remaining life. A customer list with an appraised value of $104,000 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? Saved Save & Exit Help Submit This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question olidation entries would be used on a 2021 worksheet? (If no entry is required required" in the first account field.) Accounts red B Required C Debit 598,000 ✓ Credit 38.000 ✓ 922,000 ✓ 1,558,000 20,000 12,120 83,200 18,600 96,720✓ 80,000 × 80,000 × 36,000 36,000✓ 12,000 x 5,200 3,000 x

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter4: Balance Sheet: Presenting And Analyzing Resources And Financing

Section: Chapter Questions

Problem 14E

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