please help with question C.

Patrick Corporation acquired 100 percent of O'Brien Company's outstanding common stock on January 1 for $639,000 in cash. O'Brien reported net assets with a carrying amount of $374,000 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 $ 101,500 $ 249,500 0 91,200 364,000 323,800 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. Patrick O'Brien Revenues $(1,305,000) $ (828,000) Cost of goods sold 348,000 382,000 Depreciation expense 82,200 95,400 Amortization expense 32,200 Income from O'Brien (336, 380) Net income $(1,178,980) $ (350,600) Retained earnings 1/1 $ (882,000) $ (274,000) Net Income (1,178,980) (350, 600) Dividendo declared 160,000 98,000 Retained earnings 12/31 $(1,900,980) $ (526,600) Cash 208,000 $ 121,000 Receivables 416,000 78,900 Inventory 269,000 139,000 Investment in O'Brien 877,380 0 Trademarks 480,000 64,200 Customer relationships Equipment (net) 1,014,000 292,000 Goodwill Total assets $ 3,264,380 $ 695, 100 Liabilities $ (963,400) $ (68,500) Common stock (400,000) (100,000) Retained earnings 12/31 (1,900,980) (526, 600) Total liabilities and equity $(3,264,380) $ (695,100) 0 0 0 0 a. Which investment method did Patrick use to compute the $336,380 income from O'Brien? b. Determine the totals to be reported for this business combination for the year ending December 31. C. Verify the total determined in part (b) by producing a consolidation worksheet for Patrick and O'Brien for the year ending December 31 Accounts $ Revenues Cost of goods sold Depreciation expense Amortization expense Income from O'Brien Net income Patrick $ (1,305,000) 348,000 82,200 32,200 (336,380) $ (1,178,980) O'Brien (828,000) 382,000 95,400 0 Consolidation Entries Consolidated Debit Credit Totals 0 $ 2,133,000 0 730,000 (4,020) 173,580 0 50,440 0 X 0 $ 1,178,980 0 (350,600) $ 0 882,000 1,178,980 Retained earnings, 1/1 Net income (above) Dividends declared Retained earnings 12/31 (882,000) (1,178,980) 160,000 $ (1,900,980) (274,000) (350,600) 98,000 (526,600) $ $ $ 121,000 78,900 139,000 Cash Receivables Inventory Investment in O'Brien Trademarks Customer relationships Equipment (net) Goodwill Total assets 208,000 416,000 269,000 877,380 480,000 0 1,014,000 0 3,264,380 64,200 0 292,000 0 $ $ 695, 100 Liabilities Common stock Retained earnings (above) Total liabilities and (963,400) (400,000) 1,900,980 $ (3,264,380) (68,500) (100,000) (526,600) (695,100) $ O ser (4,020)