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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. Assume that Mergaronite acquired Hill on January 1, 2017, by issuing 7,800 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 $18,400, its buildings were overvalued by $29,000, and equipment was undervalued by $58,600. The buildings had a 10 -year remaining life; the equipment had a 5 -year remaining life. A customer list with an appraised value of $96,000 was developed internally by H ill 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. Determine the December 31,2021 , consolidated totals for the following accounts: (Input all amounts as positive values.) Complete this question by entering your answers in the tabs below. In requirement (a), can the consolidated totals be determined without knowing which method the parent used to account for the subsidiary? Complete this question by entering your answers in the tabs below. If the parent uses the equity method, what consolidation entrles would be used on a 2021 worksheet? (If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) 1 Prepare Entry S to eliminate the beginning stockholders' equity of the subsidlary. 2 Prepare Entry A to recognize the unamortized allocation balances as of the beginning of the current year. 3 Prepare Entry I to remove the equity Income recognized during the year - equity method. 4 Prepare Entry D to remove the Intra-entity dividend declarations. Credit
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