The 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.

Revenues $(582,000) $(258,000)Cost of goods sold 294,000 116,000 Depreciation expense 112,000 44,000 Investment income NA NA Retained earnings, 1/1/21 (902,000) (620,000)Dividends declared 140,000 38,000 Current assets 212,000 700,000 Land 314,000 88,000 Buildings (net) 504,000 144,000 Equipment (net) 194,000 246,000 Liabilities (392,000) (316,000)Common stock (284,000) (36,000)Additional paid-in capital (52,000) (918,000)

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 $20,200, its buildings were overvalued by $28,000, 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 $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?

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