Following are selected accounts for Mergaronite Company and Hill, Inc., as of December 31, 2018. Several...

	Mergaronite			Hill
Revenues	$	(584,000	)	$	(248,000	)
Cost of goods sold		298,000			112,000
Depreciation expense		106,000			58,000
Investment income		NA			NA
Retained earnings, 1/1/18		(896,000	)		(590,000	)
Dividends declared		134,000			44,000
Current assets		210,000			676,000
Land		316,000			84,000
Buildings (net)		510,000			128,000
Equipment (net)		208,000			256,000
Liabilities		(412,000	)		(320,000	)
Common stock		(288,000	)		(44,000	)
Additional paid-in capital		(46,000	)		(938,000	)

Assume that Mergaronite took over Hill on January 1, 2014, by issuing 7,200 shares of common stock having a par value of $10 per share but a fair value of $100 each. On January 1, 2014, Hill’s land was undervalued by $19,200, its buildings were overvalued by $30,800, and equipment was undervalued by $58,200. The buildings had a 10-year remaining life; the equipment had a 5-year remaining life. A customer list with an appraised value of $104,000 was developed internally by Hill and was to be written off over a 20-year period.

Determine the December 31, 2018, consolidated totals for the following accounts:
In requirement (a), can the consolidated totals be determined without knowing which method the parent used to account for the subsidiary?
If the parent uses the equity method, what consolidation entries would be used on a 2018 worksheet?

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ekkarill92 answered 1 week ago

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