Patrick Corporation acquired 100 percent of O'Brien Company's outstanding common stock on January 1 for $639,300 in cash. O'Brien reported net assets with a carrying amount of $398,000 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: Trademarks indefinite life) Customer relationships (5-year remaining life) Equipment (10-year remaining life) Book Fair Values Values $ 89,000 $ 195,000 0 102,000 387,000 340,800 Any goodwill is considered to have an indefinite life with no Impairment charges during the year. The 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 $ (572,000) 254,000 89,700 0 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 $ (1,155,000) 308,000 95,400 34,400 (212,520) $ (929,720) $ (744,000) (929, 720) 153,000 $ (1,520, 720) $ 244,000 340,000 182,000 760,820 604,000 $ (228,300) $ (298,000) (228,300) 91,000 $ (435,300) $ 127,500 81,000 232,000 0 76,200 0 281,000 0 $ 797,700 $ (262,400) (100,000) (435,300) $ (797,700) 1,074,000 0 $ 3,204,820 $ (1,284,100) (400,000) (1,520, 720) $ (3,204,820) a. Which Investment method did Patrick use to compute the $212,520 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. a. Which investment method did Patrick use to compute the $212,520 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 Which investment method did Patrick use to compute the $212,520 income from O'Brien? Which investment method did Patrick use to compute the $212,520 income from O'Brien? Required A Required B Required Determine the totals to be reported for this business combination for the year ending December 31. (Input all amounts as positive values.) Consolidated totals Revenues Cost of goods sold Amortization expense Depreciation expense Income from 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 (net) Goodwill Total assets Liabilities Common stock Retained earnings, 12/31 Total liabilities and equities Consolidated Totals Accounts Revenues Cost of goods sold Depreciation expense Amortization expense Income from O'Brien Net income PATRICK CORPORATION AND CONSOLIDATED SUBSIDIARY O'BRIEN Consolidation Worksheet For Year Ending December 31 Consolidation Entries Patrick O'Brien Debit Credit $ (1,155,000) $ (572,000) 308,000 254,000 95,400 89,700 34,400 0 (212,520) 0 $ (929,720) $ (228,300) Retained earnings, 1/1 Net income (above) Dividends declared Retained earnings, 12/31 (744,000) (929,720) 153,000 (1,520,720) (298,000) (228,300) 91,000 (435,300) $ $ Cash $ Receivables 127,500 81,000 232,000 Inventory Investment in O'Brien Trademarks Customer relationships Equipment (net) Goodwill Total assets 244,000 $ 340,000 182,000 760,820 604.000 0 76,200 0 1,074,000 0 3,204,820 $ 281,000 0 $ 797,700 Liabilities Common stock Retained earnings (above) Total liabilities and equity (1,284,100) (400,000) 1,520,720 (3,204,820) (262,400) (100,000) (435,300) (797 700) $ $ $ 0 $ 0