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)

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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.

2. the consolidated totals be determined without knowing which method the parent used to account for the subsidiary?