Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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. Assume that Mergaronite acquired Hill on January 1, 2017, by issuing 6,000 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 $19,400, its buildings were overvalued by $29,600, and equipment was undervalued by $61,000. The bulldings 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. 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? Determine the December 31,2021 , consolidated totals for the following accou In requirement (a), can the consolidated totals be determined without knowing which method the parent used to account for the subsidiary? Prepare Entry $ to eliminate the beginning stockholders' equity of the subsidiary. Note: Enter debits before credits

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting An Introduction

Authors: Alex Watson, Jacqui Kew

5th Edition

0190425520, 978-0190425524

More Books

Students also viewed these Accounting questions