The following are selected accounts and balances for Jonah Company and Hill, Incorporated, as of December 31, 2024. Several of
Jonah's accounts have been omitted. Credit balances are indicated by parentheses. Dividends were declared and paid in the same
period.
Revenues
Accounts
Cost of goods sold
Depreciation expense
Investment income
Retained earnings, 1/1/24
Dividends declared
Current assets
Land
Buildings (net)
Equipment (net)
Liabilities
Common stock
Additional paid-in capital
Jonah
$ (596,000)
260,000
102,000
Not given
(888,000)
Hill
$ (248,000)
110,000
40,000
Not given
(604,000)
130,000
36,000
202,000
692,000
282,000
98,000
482,000
146,000
204,000
240,000
(404,000)
(320,000)
(300,000)
(42,000)
(56,000)
(888,000)
Assume that Jonah acquired Hill on January 1, 2020, 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, 2020, 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
proprietary database with an appraised value of $96,000 was developed internally by Hill and was estimated to have a 20-year
remaining useful life.
Required:
A
a. Determine the December 31, 2024, consolidated totals for the following accounts:
Revenues
Cost of goods sold
Depreciation expense
Amortization expense
Buildings
Equipment
Database
Common stock
Additional paid-in capital
