Question 12 Where the Red x are showing

Patrick Corporation acquired 100 percent of O'Brien Company's outstanding common stock on January 1 for $724,300 in cash. O'Brien reported net assets with a carrying amount of $445,000 at that time. Some of O'Brlen's assets elther were unrecorded (having been Internally developed) or had fair values that differed from book values as follows: Any goodwill is considered to have an Indefinlte life with no Impalrment charges during the year. The following are financlal statements at the end of the first year for these two companles prepared from thelr separately malntained accounting systems. O'Brien declared and pald dividends in the same perlod. Credit balances are Indicated by parentheses. a. Which Investment method did Patrick use to compute the $295,570 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. Answer is not complete. 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.)