Following are selected accounts for Mergaronite Company and Hill, Inc., as of December 31, 2018. 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, 1/1/18 Dividends declared Current assets Land Buildings (net) Equipment (net) Liabilities Common stock Additional paid-in capital Mergaranite $ (596,000) 260,000 102,000 NA (888,000) 130,000 202,000 282,000 482,000 204,000 (404,000) (300,000) (56,000) Hill $ (248,000) 110,000 40,000 NA (604,000) 36,000 692,000 98,000 146,000 240,000 (320,000) (42,000) (888,000) Assume that Mergaronite took over Hill on January 1, 2014, by issuing 7,800 shares of common stock having a par value of $10 per share but a fair value of $100 each. On January 1, 2014, Hill's land was undervalued by $18,400, its buildings were overvalued by $29,000, and equipment was undervalued by $58,600. The buildings had a 10-year remaining life; the equipment had a 5-year remaining life. A customer list with an appraised value of $96,000 was developed internally by Hill and was to be written off over a 20- year period. a. Determine the December 31, 2018, 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 2018 worksheet? Required A Required B Required C Determine the December 31, 2018, consolidated totals for the following accounts: Totals Revenues Cost of goods sold Depreciation expense Amortization expense Buildings Equipment Customer list Common stock Additional paid-in capital Required A Required B Required C If the parent uses the equity method, what consolidation entries would be used on a 2018 worksheet? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Following are selected accounts for Mergaronite Company and Hill, Inc., as of December 31, 2018. 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, 1/1/18 Dividends declared Current assets Land Buildings (net) Equipment (net) Liabilities Common stock Additional paid-in capital Mergaranite $ (596,000) 260,000 102,000 NA (888,000) 130,000 202,000 282,000 482,000 204,000 (404,000) (300,000) (56,000) Hill $ (248,000) 110,000 40,000 NA (604,000) 36,000 692,000 98,000 146,000 240,000 (320,000) (42,000) (888,000) Assume that Mergaronite took over Hill on January 1, 2014, by issuing 7,800 shares of common stock having a par value of $10 per share but a fair value of $100 each. On January 1, 2014, Hill's land was undervalued by $18,400, its buildings were overvalued by $29,000, and equipment was undervalued by $58,600. The buildings had a 10-year remaining life; the equipment had a 5-year remaining life. A customer list with an appraised value of $96,000 was developed internally by Hill and was to be written off over a 20- year period. a. Determine the December 31, 2018, 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 2018 worksheet? Required A Required B Required C Determine the December 31, 2018, consolidated totals for the following accounts: Totals Revenues Cost of goods sold Depreciation expense Amortization expense Buildings Equipment Customer list Common stock Additional paid-in capital Required A Required B Required C If the parent uses the equity method, what consolidation entries would be used on a 2018 worksheet? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)