Following are selected accounts for Mergaronite Company and Hill, Inc., as of December 31, 2018. Several of Mergaronites accounts have been omitted. Credit balances are indicated by parentheses. Dividends were declared and paid in the same period.

		Mergaronite				Hill
Revenues		$	(602,000	)		$	(240,000	)
Cost of goods sold			260,000				114,000
Depreciation expense			120,000				44,000
Investment income			NA				NA
Retained earnings, 1/1/18			(892,000	)			(602,000	)
Dividends declared			120,000				44,000
Current assets			200,000				662,000
Land			318,000				94,000
Buildings (net)			500,000				140,000
Equipment (net)			194,000				248,000
Liabilities			(390,000	)			(320,000	)
Common stock			(294,000	)			(36,000	)
Additional paid-in capital			(54,000	)			(908,000	)

Assume that Mergaronite took over Hill on January 1, 2014, by issuing 7,600 shares of common stock having a par value of $10 per share but a fair value of $100 each. On January 1, 2014, Hills land was undervalued by $19,800, its buildings were overvalued by $29,200, 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 $94,000 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:

Totals
Revenues	$
Cost of goods sold	$
Depreciation expense	$
Amortization expense	$
Buildings	$
Equipment	$
Customer list	$
Common stock	$
Additional paid-in capital	$

B.) In requirement (a), can the consolidated totals be determined without knowing which method the parent used to account for the subsidiary?

Consolidated totals

C.) If the parent uses the equity method, what consolidation entries would be used on a 2018 worksheet?

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

Event	Account	Debit	Credit
S

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

Event	Account	Debit	Credit
A

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

Event	Account	Debit	Credit
I

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

Event	Account	Debit	Credit
D

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

Event	Account	Debit	Credit
E