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 $ (584,000 ) $ (258,000 ) Cost of goods sold 276,000 92,000 Depreciation expense 110,000 54,000 Investment income NA NA Retained earnings, 1/1/21 (902,000 ) (582,000 ) Dividends declared 138,000 38,000 Current assets 196,000 660,000 Land 286,000 92,000 Buildings (net) 502,000 160,000 Equipment (net) 206,000 254,000 Liabilities (410,000 ) (318,000 ) Common stock (298,000 ) (40,000 ) Additional paid-in capital (54,000 ) (892,000 ) Assume that Mergaronite acquired Hill on January 1, 2017, by issuing 8,000 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 $20,600, its buildings were overvalued by $31,200, and equipment was undervalued by $61,800. The buildings had a 10-year remaining life; the equipment had a 5-year remaining life. A customer list with an appraised value of $108,000 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: Depreciation Expense How do you calculate the depreciation expense
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 $ (584,000 ) $ (258,000 ) Cost of goods sold 276,000 92,000
How do you calculate the depreciation expense
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