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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.

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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. Credit balances are indicated by parentheses. Dividends were declared and paid in the same period. Revenues Cost of goods sold Depreciation expense Investment income Retained eamings, 1/1/21 Dividends declared Current assets Land Buildings (net) Equipment (net) Liabilities Common stock Additional paid-in capital Mer gavorite $ (590.000) 290,000 112.000 NA (904, 000) 140.000 212, 000 280,000 502.000 188,000 (416.000) (294, 000) (46, 000) Hill $ (240.000) 114.000 50.000 NA (610, 000) 36.000 682.000 98.000 132.000 240,000 (302.000) (44, 000) (908, 000) Assume that Mergaronite acquired Hill on January 1, 2017, by issuing 7,400 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 $18,600, its buildings were overvalued by $31,400, 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 $106,000 was developed internally by Hill and was 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? c. If the parent uses the equity method, what consolidation entries would be used on a 2021 worksheet? Complete this question by entering your answers in the tabs below. Required A Required B Required Determine the December 31, 2021, consolidated totals for the following accounts: (Input all amounts as positive values.) Consolidated Totals Revenues Cost of goods sold Depreciation expense Amortization expense Buildings Equipment Customer list Common stock Additional paid-in capital 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? c. If the parent uses the equity method, what consolidation entries would be used on a 2021 worksheet? Complete this question by entering your answers in the tabs below. Required A Required B Required 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 2021 worksheet? Complete this question by entering your answers in the tabs below. Required A Required B Required If the parent uses the equity method, what consolidation entries would be used on a 2021 worksheet? (If no entry is req transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries Prepare Entry S to eliminate the beginning stockholders' equity of the subsidiary Note: Enter debits before credits. Accounts Debit Credit Event S Record entry Clear entry view general journal the first account feld viene transaction list Consolidation Worksheet Entries Prepare Entry A to recognize the unamortized allocation balances as of the beginning of the current year Note: Enter debits before credits. Event Accounts Debit Credit A Record entry Clear entry view general journal Required B account fields LIL 15 eu view transaction list Consolidation Worksheet Entries Prepare Entry D to remove the Intra-entity dividend declarations, Note: Enter debits before credits. Event Accounts Debit Credit D Record entry Clear entry view general Journal Required B Mc LULUuation entries would be used on a 2021 worksheet? (If no ent transaction event, select No journal entry required" in the first account field.) eBook view transaction list Print Consolidation Worksheet Entries References 3 4 This Prepare Entry E to recognize the excess acquisition-date fair-value amortizations for the period. Note: Enter debits before credits Event Accounts Debit Credit Record entry Clear entry view general journal Required B Mc Graw Hill No Event Accounts Debit Credit 1 S O 610,000 44,000 Retained earnings Common stock Additional paid-in capital Investment in Hill 908,000 1,562,000 2 A > Land Equipment (net) Customer list (net) Buildings (net) Investment in Hill 18,600 12,360 84 800 >> 18,840 96,920 3 36,000 Investment in Hill Dividends declared x 36,000 4 D 36,000 Investment in Hill Dividends declared >> 36,000 5 E 5,300 Amortization expense Depreciation expense Buildings (net) Customer list (net) Equipment (net) 9,220 3.140 OOOO 12.360 X 5,300

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