Patrick Corporation acquired 100 percent of O'Brien Company's outstanding common stock on January 1 for $711,100 in cash. O'Brien reported net assets with a carrying amount of $447,000 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 84,080 @ 364, eee Trademarks (indefinite life) Customer relationships (5-year remaining life) Equipment (18-year remaining life) $ Fair Values 217,600 102,080 316, eee 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 (872,280) 484,000 73,200 a $ $ Patrick $ (1,200,000) 32e, eee 100, 200 27,000 (379,200) $ (1,132,880) $ (894, 000) (1,132,000) 145,000 $ (1,881,280) $ 243, e80 358,000 181, eee 1, e87,380 482, eee 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 (394,800) (347,000) (394,800) 83, eee (658,880) 136, eee 60,988 220, 880 $ $ 77,100 938, eee 316,000 $ $ $ 3,209,380 $ (928,300) (480, eee) (1,881, eee) $ (3,209,300) 810, eee (51,200) (1ee, eee) (658,800) (810,000) $ a. Which investment method did Patrick use to compute the $379,200 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 $379,200 income from O'Brien? Which investment method did Patrick use to compute the $379,200 income from O'Brien?