Problem 2-25 (LO 2-4, 2-7) On January 1, 2015, Casey Corporation exchanged $3,213,000 cash for 100 percent of the outstanding voting stock of Kennedy Corporation. Casey plans to maintain Kennedy as a wholly owned subsidiary with separate legal status and accounting information systems. At the acquisition date, Casey prepared the following fair-value allocation schedule: Fair value of Kennedy (consideration transferred) S 3,213,000 Carrying amount acquired 2,600,000 S 613,000 Excess fair value 343,000 to buildings (undervalued) to licensing agreements (overvalued) (144,000) 99,000 S 414,000 to goodwill (indefinite life) Immediately after closing the transaction, Casey and Kennedy prepared the following postacquisition balance sheets from their separate financial records. Accounts Casey Kennedy Cash S 460,000 154.500 1,605,000 289,000 Accounts receivable 1,435,000 Inventory 163.500 Investment in Kennedy 3,213,000 5,625,000 2,590,000 Buildings (net) 2,870,000 Licensing agreements Goodwi 386,000 Total assets S 12,724,000 6,067,000 Accounts payable (354,000) (457,000) (3,370,000) (3,010,000) Long-term debt Common stock (3,000,000) (1,000,000) Additional paid-in capital (500,000) Retained earnings (6,000,000) 100,000) Total liabilities and equities S(12,724,000) (6,067,000) Prepare a January 1, 2015, consolidated balance sheet for Casey Corporation and its subsidiary Kennedy Corporation