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. help me with the incorrect values Consolidated Totals Revenues $840,000selected answer correct Cost of goods sold $358,000selected answer correct Depreciation expense $171,660selected answer incorrect Amortization expense $4,800selected answer correct Buildings $685,800selected answer incorrect Equipment $434,000selected answer correct Customer list $120,000selected answer incorrect Common stock $316,000selected answer correct Additional paid-in capital $54,000selected answer correct 1. If the parent uses the equity method, what consolidation entries would be used on a 2021 worksheet? This is all one question. Please help!!!!!!!!!!! These are the entries that i need help with!!!!!!!!!!!! Prepare Entry S to eliminate the beginning stockholders' equity of the subsidiary. Prepare Entry A to recognize the unamortized allocation balances as of the beginning of the current year. Prepare Entry I to remove the equity income recognized during the year - equity method.

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. help me with the incorrect values Consolidated Totals Revenues $840,000selected answer correct Cost of goods sold $358,000selected answer correct Depreciation expense $171,660selected answer incorrect Amortization expense $4,800selected answer correct Buildings $685,800selected answer incorrect Equipment $434,000selected answer correct Customer list $120,000selected answer incorrect Common stock $316,000selected answer correct Additional paid-in capital $54,000selected answer correct 1. If the parent uses the equity method, what consolidation entries would be used on a 2021 worksheet? This is all one question. Please help!!!!!!!!!!! These are the entries that i need help with!!!!!!!!!!!! Prepare Entry S to eliminate the beginning stockholders' equity of the subsidiary. Prepare Entry A to recognize the unamortized allocation balances as of the beginning of the current year. Prepare Entry I to remove the equity income recognized during the year - equity method.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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	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.

help me with the incorrect values

	Consolidated Totals
Revenues	$840,000selected answer correct
Cost of goods sold	$358,000selected answer correct
Depreciation expense	$171,660selected answer incorrect
Amortization expense	$4,800selected answer correct
Buildings	$685,800selected answer incorrect
Equipment	$434,000selected answer correct
Customer list	$120,000selected answer incorrect
Common stock	$316,000selected answer correct
Additional paid-in capital	$54,000selected answer correct

1. If the parent uses the equity method, what consolidation entries would be used on a 2021 worksheet? This is all one question. Please help!!!!!!!!!!!

These are the entries that i need help with!!!!!!!!!!!!

Prepare Entry S to eliminate the beginning stockholders' equity of the subsidiary.

Prepare Entry A to recognize the unamortized allocation balances as of the beginning of the current year.

Prepare Entry I to remove the equity income recognized during the year - equity method.

Prepare Entry D to remove the Intra-entity dividend declarations.

Prepare Entry E to recognize the excess acquisition-date fair-value amortizations for the period.

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