Problem 2-28 (Algo) (LO 2-4, 2-7) On January 1, 2021, Casey Corporation exchanged $3.298,000 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 falr-value allocation schedule: Fair value of Kennedy consideration transferred) 3.295.000 Carrying amount acquired 2.600.000 Ex0983 telt value a 898.000 to bulldings (undervalued) 829.000 to Il censing agreements (over valued) (108.000) 223.000 to goodwill (Indefinite 11to) 475.000 a 8 Immediately after closing the transaction. Casey and Kennedy prepared the following postacquisition balance sheets from their separate financial records (credit balances in parentheses). a a Accounts Cash Accounts receivable Inventory Investment In Kennedy Bulldings (net) Licensing agreements GoodNlll Total 83306 Accounts payable Long-tern debt Comon stock Additional peld-in capital Retained varnings Total 118 lities and equit 10 Casey 447.000 1.885.000 1.270.000 3.298.000 8. 142,500 0 821,500 12.614.000 (804,000) (3.610.000) (8.000.000) Kennedy 179.250 344.000 217.750 2.780.000 2.250.000 8 a 5.811.000 (421.000 (2.780.000 (1.000.000 (500.000 (1.100.000 (6.811.000) (8.000.000) (12.614,000) a Prepare an acquisition-date consolidated balance sheet for Casey Corporation and its subsidiary Kennedy Corporation. (For accounts where multiple consolidation entries are required.combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Input all amounts as positive values.) CASEY CORPORATION AND CONSOLIDATED SUBSIDIARY KENNEDY Worksheet for a Consolidated Balance Sheet January 1, 2021 Adjust. & Elim. Casey Kennedy Debit Credit Consolidated Cash 447,000 $ 179,250 $ 447.000 Accounts receivable 1,335,000 344.000 Inventory 1,270,000 217,750 Investment in Kennedy 3,298,000 Buildings (net) 6,142,500 2,790,000 Licensing agreements 2.280,000 Goodwill 321,500 Total assets $ 12,814,000 $ 5,811,000 S Accounts payable $ (304,000) (421,000) Long-term debt (3.510,000) (2.790,000) Common stock (3.000.000 (1.000.000) Additional paid-in capital (500.000) Retained earnings 6,000,000) (1,100,000) Total liabilities and equities $(12.814,000) $ (5.811.000) S $ 447.000 s 0