On January 1, 2018 Casey Corporation exchanged $3,205,000 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) Carrying amount acquired Excess fair value to buildings (undervalued) to licensing agreements (overvalued) to goodwill indefinite life) $ 3,205,000 2,600,000 $ 605,000 $ 323,000 (191,000) 132,000 473,000 Immediately after closing the transaction, Casey and Kennedy prepared the following postacquisition balance sheets from their separate financial records. $ Accounts Cash Accounts receivable Inventory Investment in Kennedy Buildings (net) Licensing agreements Goodwill Total assets Casey 466,000 1,595,000 1.335,000 3,205,000 6,135,000 Kennedy 154,500 315.000 428,500 2,478,000 3,120,000 251,000 12,987,000 $ $ 6,488,000 separate financial records. Casey 466,000 1,595,000 1,335,000 3,205,000 6,135,000 Kennedy 154,500 315,000 428,500 2,470,000 3,120,000 Accounts Cash Accounts receivable Inventory Investment in Kennedy Buildings (net) Licensing agreements Goodwill Total assets Accounts payable Long-term debt Common stock Additional paid-in capital Retained earnings Total liabilities and equities 251,000 12,987,000 (337,000) 3,650,000) (3,000,000) $ $ 6,488,000 (448,000) (3, 440,000) (1,000,000) (500,000) (1,100,000) (6,488,000) $ (6.000.000 (12,987,000) $ Prepare an acquisition-date consolidated balance sheet for Casey Corporation and its subsidiary Kennedy Corporation. (Negative amounts should be indicated by a minus sign.) CASEY CORPORATION AND CONSOLIDATED SUBSIDIARY KENNEDY Consolidated Balance Sheet January 1, 2018 Assets Liabilities and Stockholders' Equity mon stock Additional paid-in capital Retained earnings Total liabilities and equities (3,000,000) 6,000,000 (12,987,000) (1,000,000) (500,000) (1,100,000) (6,488,000) $ $ Prepare an acquisition-date consolidated balance sheet for Casey Corporation and its subsidiary Kennedy Corporation. (Negative amounts should be indicated by a minus sign.) CASEY CORPORATION AND CONSOLIDATED SUBSIDIARY KENNEDY Consolidated Balance Sheet January 1, 2018 Assets Liabilities and Stockholders' Equity Total assets Total liabilities and equities