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On January 1, 2021, Casey Corporation exchanged $3,250,000 cash for 100 percent of the outstanding voting stock of Kennedy Corporatio Casey plans to maintain Kennedy

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On January 1, 2021, Casey Corporation exchanged $3,250,000 cash for 100 percent of the outstanding voting stock of Kennedy Corporatio 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. (For accounts wh multiple consolidation entries are required,combine all debit entries into one amount and enter this amount in the debit column worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Inp amounts as positive values.) CASEY CORPORATION AND CONSOLIDATED SUBSIDIARY KENNEDY Worksheet for a Consolidated Balance sheet January 1, 2021 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 \begin{tabular}{|r|r|r|r|r|r|} \hline \multicolumn{1}{|c|}{} & \multicolumn{2}{|c|}{ Adjust. \& Elim. } & \\ \hline \multicolumn{1}{|c|}{ Casey } & \multicolumn{1}{|c|}{ Kennedy } & Debit & \multicolumn{1}{c|}{ Credit } & Consolidated \\ \hline$500,000 & $176,250 & & & \\ \hline 1,410,000 & 345,000 & & & \\ \hline 1,585,000 & 375,750 & & & \\ \hline 3,250,000 & & & & \\ \hline 5,722,500 & 1,990,000 & & & \\ \hline & 3,070,000 & & & \\ \hline 693,500 & & & & \\ \hline$13,161,000 & $5,957,000 & & & \\ \hline$(391,000) & (377,000) & & & \\ \hline(3,770,000) & (2,980,000) & & & \\ \hline(3,000,000) & (1,000,000) & & & \\ \hline & (500,000) & & & \\ \hline(6,000,000) & (1,100,000) & & & \\ \hline$(13,161,000) & $(5,957,000) & & & \\ \hline \end{tabular}

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