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On January 1, 2021, Casey Corporation exchanged $3,164,000 cash for 100 percent of the outstanding voting stock of Kennedy Corporation. Casey plans to maintain Kennedy

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On January 1, 2021, Casey Corporation exchanged $3,164,000 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: Pair value of Kennedy (consideration transferred) $3,164,000 Carrying amount acquired 2,500,000 Excess fair value 564,000 to buildings (undervalued) $ 323,000 to licensing agreements (overvalued) (260.000 163,000 to goodwill indefinite life) 401,000 5 0 Immediately after closing the transaction, Casey and Kennedy prepared the following postacquisition balance sheets from their separate financial records (credit balances in parentheses). Accounts Casey Kennedy Cash 472,000 $ 128,250 Accounts receivable 1,635,000 375,000 Inventory 1,305,000 134,750 Investment in Kennedy 3,164,000 Buildings (net) 6,105,000 1,050,000 Licensing agreements 3,170,000 Goodwill 460,000 0 Total assets $ 13, 141,000 $ 5,658,000 Accounts payable $ (321,000) (388,000) Long-term debt (3.820,000) 12,670,000) Comon stock (3,000,000) 11,000,000) Additional paid-in capital 0 (500,000) Retained earnings (6,000,000) (1,100,000) Total liabilities and equities $ (13, 141,000) $ (5,658,000) 0 Prepare an acquisition-date consolidated balance sheet for Casey Corporation and its subsidiary Kennedy Corporation. (For accounts where multiple consolidation entries are required.combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Input all amounts as positive values.) Consolidated Casey CASEY CORPORATION AND CONSOLIDATED SUBSIDIARY KENNEDY Worksheet for a Consolidated Balance Sheet January 1, 2021 Adjust. & Eilm. Kennedy Debit Credit Cash $ 472.000 $ 128.250 Accounts receivable 1.635.000 375,000 Inventory 1,305,000 134,750 Investment in Kennedy 3,164,000 Buildings (net) 6,105,000 1,850,000 Licensing agreements 3,170,000 Goodwill 460,000 Total assets $ 13,141,000 $5,650,000 Accounts payable $ (321,000) (388,000) Long-term debt (3.820,000) (2.670,000) Common stock (3,000,000) (1.000.000) Additional paid-in capital (500.000) Retained earnings (6,000,000 (1,100,000) Total abilities and equities $(13.141,000) $ (5,658,000) S 05 S 0 0 S

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