4) 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:

Fair value of Kennedy (consideration transferred)...... $3,300,000

Carrying amount acquired............................ 2,600,000

Excess fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 700,000

to buildings (undervalued).......................... $ 382,000

to licensing agreements (overvalued) ............... (108,000) 274,000

to goodwill (indefinite life) .......................... $ 426,000

Immediately after closing the transaction, Casey and Kennedy prepared the following post acquisition balance sheets from their separate financial records.

Accounts Casey Kennedy

Cash ................................... $ 457,000 $ 172,500

Accounts receivable...................... 1,655,000 347,000

Inventory................................ 1,310,000 263,500

Investment in Kennedy ................... 3,300,000 0

Buildings (net) ........................... 6,315,000 2,090,000

Licensing agreements ................... 0 3,070,000

Goodwill ................................ 347,000 0

Total assets ........................... $ 13,384,000 $ 5,943,000

Accounts payable........................ $ (394,000) $ (393,000)

Long-term debt .......................... (3,990,000) (2,950,000)

Common stock .......................... (3,000,000) (1,000,000)

Additional paid-in capital.................. 0 (500,000)

Retained earnings........................ (6,000,000) (1,100,000)

Total liabilities and equities........... $ (13,384,000) $ (5,943,000)

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