Patrick Corporation acquired 100 percent of O'Brien Company's outstanding common stock on January 1 for $617,900 in cash. O'Brien reported net assets with a carrying amount of $393,000 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: 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. a. Which investment method did Patrick use to compute the $329,400 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. Determine the totals to be reported for this business combination for the year ending December 31 . (Input all amounts as positive values.) \begin{tabular}{|l|l|} \hline \multicolumn{1}{|c|}{ Net income } \\ \hline Retained earnings, 1/1 & \\ \hline Dividends declared & \\ \hline \multicolumn{1}{c|}{ Retained earnings, 12/31 } & \\ \hline Cash & \\ \hline Receivables & \\ \hline Inventory & \\ \hline Investment in O'Brien & \\ \hline Trademarks & \\ \hline Customer relationships & \\ \hline Equipment (net) & \\ \hline Goodwill & \\ \hline Total assets & \\ \hline Liabilities & \\ \hline Common stock & \\ \hline Retained earnings, 12/31 & \\ \hline Total liabilities and equities & \\ \hline \end{tabular}