The separate condensed balance sheets of Patrick Corporation and its wholly-owned subsidiary, Sean Corporation, are as f
Posted: Thu Apr 28, 2022 11:26 am
The separate condensed balance sheets of Patrick Corporation and
its wholly-owned subsidiary, Sean Corporation, are as follows:
BALANCE SHEETS December 31, 2020 Patrick Sean Cash $ 74,000 $
56,000 Accounts receivable (net) 148,000 32,000 Inventories 96,000
46,000 Plant and equipment (net) 620,000 264,000 Investment in Sean
480,000 - Total assets $ 1,418,000 $ 398,000 Accounts payable
156,000 94,000 Long-term debt 116,000 32,000 Common stock ($10 par)
312,000 46,000 Additional paid-in capital 12,000 Retained earnings
834,000 214,000 Total liabilities and shareholders' equity $
1,418,000 $ 398,000 Additional Information: On December 31, 2020,
Patrick acquired 100 percent of Sean’s voting stock in exchange for
$480,000. At the acquisition date, the fair values of Sean’s assets
and liabilities equaled their carrying amounts, respectively,
except that the fair value of certain items in Sean’s inventory
were $24,000 more than their carrying amounts. In the December 31,
2020, consolidated balance sheet of Patrick and its subsidiary,
what amount of total assets should be reported?
its wholly-owned subsidiary, Sean Corporation, are as follows:
BALANCE SHEETS December 31, 2020 Patrick Sean Cash $ 74,000 $
56,000 Accounts receivable (net) 148,000 32,000 Inventories 96,000
46,000 Plant and equipment (net) 620,000 264,000 Investment in Sean
480,000 - Total assets $ 1,418,000 $ 398,000 Accounts payable
156,000 94,000 Long-term debt 116,000 32,000 Common stock ($10 par)
312,000 46,000 Additional paid-in capital 12,000 Retained earnings
834,000 214,000 Total liabilities and shareholders' equity $
1,418,000 $ 398,000 Additional Information: On December 31, 2020,
Patrick acquired 100 percent of Sean’s voting stock in exchange for
$480,000. At the acquisition date, the fair values of Sean’s assets
and liabilities equaled their carrying amounts, respectively,
except that the fair value of certain items in Sean’s inventory
were $24,000 more than their carrying amounts. In the December 31,
2020, consolidated balance sheet of Patrick and its subsidiary,
what amount of total assets should be reported?