Patrick Corporation acquired 100 percent of O'Brien Company's outstanding common stock on January 1, for $550,000 in cash. O'Brien reported net assets with a carrying amount of $350,000 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: Book Values Fair Values Trademarks (indefinite life) Customer relationships (5-year remaining 1ife) Equipment (10-year remaining life) $ 60,000 160,000 0 75,000 42,000 312,000 Any goodwill is considered to have an indefinite life with no impairment charges during the year. 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. Patrick $(1,125, 000) O'Brien $(520,000) Revenues Cost of goods sold Depreciation expense Amortization expense Income from 0'Brien 300,000 75,000 25,000 (210,000 228,000 70,000 $ (935, 000) $ (700,000) $ (222,000) $(250,000) (222,000) Net income Retained earnings 1/1 Net income Dividends declared (935,000) 142,000 80,000 $(1,493,000) $ 185,000 Retained earnings 12/31 $(392,000) 105,000 Receivables Inventory Investment in O'Brien Trademarks Customer relationships Equipment (net) Goodwill 225,000 175,000 680,000 474,000 56,000 135,000 60,000 925,000 272,00 2,664,000 $(771,000) Total assets 628,000 Liabilities Common stock Retained earnings 12/31 $ (136,000) (100,000) (400,000) 1,493,000)(392,000) $ (2,664,000) Total liabilities and equity $(628,000) a. Which investment method did Patrick use to compute the $210,000 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 $210,000 income from O'Brien? Which investment method did Patrick use to compute the $210,00 income from O'Brien?