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Kindly show work. Will up-vote. Thank you Patrick Corporation acquired 100 percent of O'Brien Company's outstanding common stock on January 1, for $669,200 in cash.

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Kindly show work. Will up-vote. Thank you

Patrick Corporation acquired 100 percent of O'Brien Company's outstanding common stock on January 1, for $669,200 in cash. O'Brien reported net assets with a carrying amount of $433,000 at that time. Some of O'Brien's assets either were unrecorded (having been internally developed) or had fair values that differed from book values as follows: Book Values $ 97,000 Trademarks (indefinite life) Customer relationships (5-year remaining life) Equipment (10-year remaining life) Fair Values $ 221,000 78,600 327,800 374,000 Any goodwill is considered to have an indefinite life with no impairment charges during the year. Following are financial statements at the end of the first year for these two companies prepared from their separately maintained accounting systems. O'Brien declared and paid dividends in the same period. Credit balances are indicated by parentheses. O'Brien $ (688,000) 312,000 93,600 Revenues Cost of goods sold Depreciation expense Amortization expense Income from O'Brien Net income Retained earnings 1/1 Net income Dividends declared Retained earnings 12/31 Cash Receivables Inventory Investment in O'Brien Trademarks Customer relationships Equipment (net) Goodwill Total assets Liabilities Common stock Retained earnings 12/31 Total liabilities and equity Patrick $(1,372,500) 366,000 94,500 34,800 (271,300) $(1,148,500) $ (844,000) (1,148,500) 165,000 $(1,827,500) $ 249,000 414,000 258,000 822,500 514,000 958,000 0 $ (282,400) $ (318,000) (282,400) 103,000 $ (497, 400) $ 122,000 85,200 146,000 65,700 328,000 $ 3,215,500 $ (988,000) (400,000) (1,827,500) $ (3,215,500) $ 746,900 $ (149,500) (100,000) (497,400) $ (746,900) a. Which investment method did Patrick use to compute the $271,300 income from O'Brien? b. Determine the totals to be reported for this business combination for the year ending December 31. c. Verify the totals determined in part (b) by producing a consolidation worksheet for Patrick and O'Brien for the year ending December 31. Complete this question by entering your answers in the tabs below. Required A Required B Required c Determine the totals to be reported for this business combination for the year ending December 31. Totals Revenues Cost of goods sold Amortization expense Depreciation expense Income of O'Brien Net income Retained earnings, 1/1 Dividends declared Retained earnings, 12/31 Cash Receivables Inventory Investment in O'Brien Trademarks Customer relationships Equipment Goodwill Total assets Liabilities Common stock Retained earnings, 12/31 Total liabilities and equities $ 3,365,000

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