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The following are selected accounts and balances for Mergaronite Company and Hill, Inc, as of December 31, 2021. Several of Mergaronite's accounts have been omitted.
The following are selected accounts and balances for Mergaronite Company and Hill, Inc, as of December 31, 2021. Several of Mergaronite's accounts have been omitted. Credit balances are indicated by parentheses. Dividends were declared and paid in the same period Mergarenite Hill Revenues $ (598,000) $ (248, e8e) Cast of goods sold 290,000 98,00 Depreciation expense 108,000 42, eee Investment income NA NA Retained earnings, 1/1/21 (880,000) (604,00) Dividends declared 122,000 38,000 Current assets 188,000 678, eae Land 318,000 94, ea Buildings (net) 508,000 156,000 Equipment (net) 190,000 248,000 Liabilities (416,000) (316,000 Connon stock (306,000 (38,000 Additional paid-in capital (48,000) (922,000 Assume that Mergaronite acquired Hill on January 1, 2017 by issuing 7600 shares of common stock having a par value of $10 per share but a fair value of $100 each. On January 1, 2017, Hill's land was undervalued by $20,800, its buildings were overvalued by $29.400, and equipment was undervalued by $59.600 The buildings had a 10-year remaining life; the equipment had a 5 year remaining life. A customer list with an appraised value of $108,000 was developed internally by Min and wos estimated to have a 20- year remaining useful life. a. Determine the December 31, 2021. 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? ct the parent uses the equity method, what consolidation entries would be used on a 2021 worksheet
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