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 earnings, 1/1/21 Dividends declared Current assets Land Buildings (net) Equipment (net) Liabilities Common stock Additional paid-in capital Mergaronite Hill $ (594,000) $ (248,000) 264,000 188,000 (920,000) 134,000 284,000 312,000 582,000 206,000 (408,000) (304,000) (42,880) 94,000 52,000 NA (580,000) 36,000 682,000 84,000 156,000 242,000 (314,000) (40,000) (924,000) Assume that Mergaronite acquired Hill on January 1, 2017, by Issuing 7,000 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 $18,800, Its buildings were overvalued by $31,000, and equipment was undervalued by $61,400. 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-

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 earnings, 1/1/21 Dividends declared Current assets Land Buildings (net) Equipment (net) Liabilities Common stock Additional paid-in capital Mergaronite Hill $ (594,000) $ (248,000) 264,000 188,000 (920,000) 134,000 284,000 312,000 582,000 206,000 (408,000) (304,000) (42,880) 94,000 52,000 NA (580,000) 36,000 682,000 84,000 156,000 242,000 (314,000) (40,000) (924,000) Assume that Mergaronite acquired Hill on January 1, 2017, by Issuing 7,000 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 $18,800, Its buildings were overvalued by $31,000, and equipment was undervalued by $61,400. 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-

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Description: Please help with A - need to double check my numbers The following are selected accounts and balances for Mergaronite Company and Hill, Inc., as of December 31, 2021. Several ofMergaronite's accounts have been omitted. Credit balances are indicated b

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...

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The current assets and liabilities sections of the comparative balance sheet of Wildhorse Inc., a private company reporting under ASPE, at October 31 are presented below, along with the income statement: WILDHORSE INC.Comparative Balance Sheet Accounts 2021 2020 Cash $72,270 $76,650 Accounts receivable 46,720 29,930 Inventory 23,725 33,580 Prepaid expenses 5,475 4,234 Accounts payable 31,390 26,280 Accrued expenses payable 3,650 5,840 Dividends payable 17,520 12,410 Income taxes payable 4,964 8,614 WILDHORSE INC.Income StatementYear Ended October 31, 2021 Sales $456,250 Cost of goods sold 284,700 Gross profit 171,550 Operating expenses $64,240 Depreciation expense 16,790 Loss on sale of equipment 5,840 86,870 Profit before income taxes 84,680 Income taxes 21,170 Profit $63,510 Prepare the…
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