On January 1, 2021, Casey Corporation exchanged $3,300,000 cash for 100 percent of the outstanding voting stock of Kennedy Corporation. Casey plans to maintain Kennedy as a wholly owned subsidiary with separate legal status and accounting information systems.

At the acquisition date, Casey prepared the following fair-value allocation schedule:

Immediately after closing the transaction, Casey and Kennedy prepared the following postacquisition balance sheets from their separate financial records (credit balances in parentheses).

Prepare an acquisition-date consolidated balance sheet for Casey Corporation and its subsidiary Kennedy Corporation.

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$3,300,000 Fair value of Kennedy (consideration transferred) Carrying amount acquired 2,600,000 Excess fair value.. $ 700,000 to buildings (undervalued) to licensing agreements (overvalued) $ 382,000 (108,000) 274,000 to goodwill (indefinite life) . $ 426,000