he following are selected accounts and balances for Mergaronite Company and Hill, Inc., as of December 31, 2021. 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		$	(614,000	)		$	(252,000	)
Cost of goods sold			274,000				96,000
Depreciation expense			106,000				56,000
Investment income			NA				NA
Retained earnings, 1/1/21			(886,000	)			(610,000	)
Dividends declared			138,000				40,000
Current assets			204,000				668,000
Land			314,000				100,000
Buildings (net)			514,000				138,000
Equipment (net)			196,000				258,000
Liabilities			(396,000	)			(316,000	)
Common stock			(300,000	)			(36,000	)
Additional paid-in capital			(40,000	)			(914,000	)

Assume that Mergaronite acquired Hill on January 1, 2017, by issuing 6,800 shares of common stock having a par value of $10 per share but a fair value of $100 each. On January 1, 2017, Hills land was undervalued by $18,600, its buildings were overvalued by $31,200, and equipment was undervalued by $58,200. The buildings had a 10-year remaining life; the equipment had a 5-year remaining life. A customer list with an appraised value of $94,000 was developed internally by Hill and was estimated to have a 20-year remaining useful life.

1. Determine the December 31, 2021, consolidated totals for the following accounts:

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

3. If the parent uses the equity method, what consolidation entries would be used on a 2021 worksheet?