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On January 1, 2021, Casey Corporation exchanged $3,262,000 cash for 100 percent of the outstanding voting stock of Kennedy Corporation Casey plans to maintain Kennedy
On January 1, 2021, Casey Corporation exchanged $3,262,000 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 falr-value allocation schedule: Fair value of Kennedy (consideration transferred) $3,262,000 Carrying amount acquired 2,600,000 ces fair value to buildinga (undervalued) to licensing agreements (overvalued) 185,000 to goodi11 (Indefinite 117) 477,000 662,000 $ $384.000 (199.000) $ Immediately after closing the transaction, Casey and Kennedy prepared the following postacquisition balance sheets from their separate financial records (credit balances in parentheses) Accounts Canh Accounts receivable Inventory Investment in Kannedy buildings (net) tacanning agreements Goodil Total auto Accounts payable Long-term debt Common stock Additional paid in capital Retained warnings Total liabilities and equities Casey Kennedy $ 423,000 5 139,500 1,515,000 305,000 1,655,000 230,500 3,262,000 5,820,000 2,280,000 0 2,720,000 361,000 0 $ 13,036,000 $ 5,675,000 $ (336,000) (435,000) 13,700,000) (2,640,000) (3,000,000) (1,000,000) (500,000) (6.000.000) (1,100,000) (13,036,000) $ (5,675,000 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 os positive values.)
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