Problems 20 and 21 are based on the following information. The separate condensed balance sheets of Patrick Corporation and its wholly owned subsidiary, Sean Corporation, are as follows:

BALANCE SHEETS

December 31, 2020

Patrick Sean

Cash $80,000 $60,000

Accounts receivable (net) $140,000 $25,000

Inventories $90,000 $50,000

Plant and equipment (net) $625,000 $280,000

Investment in Sean $460,000 $ -0-

Total assets $1,395,000 $415,000

Accounts payable $160,000 $95,000

Long-term debt $110,000 $30,000

Common stock ($10 par) $340,000 $50,000

Additional paid-in capital $10,000

Retained earnings $785,000 $230,000

Total liabilities and shareholders equity $1,395,000 $415,000

Additional Information:

• On December 31, 2020, Patrick acquired 100 percent of Seans voting stock in exchange for $460,000.
• At the acquisition date, the fair values of Seans assets and liabilities equaled their carrying amounts, respectively, except that the fair value of certain items in Seans inventory were $25,000 more than their carrying amounts.

20. In the December 31, 2020, consolidated balance sheet of Patrick and its subsidiary, what amount of total assets should be reported?

1. $1,375,000
2. $1,395,000
3. $1,520,000
4. $1,980,000

21. In the December 31, 2020, consolidated balance sheet of Patrick and its subsidiary, what amount of total stockholders equity should be reported?

1. $1,100,000
2. $1,125,000
3. $1,150,000
4. $1,355,000