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		$	(600,000	)		$	(250,000	)
Cost of goods sold			280,000				100,000
Depreciation expense			120,000				50,000
Investment income			Not given				NA
Retained earnings, 1/1/18			(900,000	)			(600,000	)
Dividends declared			130,000				40,000
Current assets			200,000				690,000
Land			300,000				90,000
Buildings (net)			500,000				140,000
Equipment (net)			200,000				250,000
Liabilities			(400,000	)			(310,000	)
Common stock			(300,000	)			(40,000	)
Additional paid-in capital			(50,000	)			(160,000	)

Assume that Mergaronite took over Hill on January 1, 2014, by issuing 7,000 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 $20,000, its buildings were overvalued by $30,000, and equipment was undervalued by $60,000. The buildings had a 10-year remaining life; the equipment had a 5-year remaining life. A customer list with an appraised value of $100,000 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 accounts given.

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?

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 In requirement (a), can the consolidated totals be determined without knowing which method the parent used to account for the subsidiary? , an to consiste es be determines without knowing with method the parent used to counter Consolidated totals 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.) view transaction list transaction list Debit Credit 1 Prepare Entry S to eliminate the beginning stockholders' equity of the subsidiary. Required ) 2 Prepare Entry A to recognize the unamortized allocation balances as of the beginning of the current year. 3 Prepare Entry I to remove the equity income recognized during the year - equity method. 4 Prepare Entry D to remove the Intra-entity dividend declarations. 5 Prepare Entry E to recognize the excess acquisition-date fair-value amortizations for the period. Note : = journal entry has been entered