Required A Required B Required C Which investment method did Patrick use to compute the $271,300 income from O'Brien? Which investment method did Patrick use to compute the $271,300 income from O'Brien? Determine the totals to be reported for this business combination for the year ending December 31. Totals Revenues Cost of goods sold Amortization expense Depreciation expense Income of O'Brien Net income Retained earnings, 1/1 Dividends declared Retained earnings, 12/31 Cash Receivables Inventory Investment in O'Brien Trademarks Customer relationships Equipment Goodwill Total assets Liabilities Common stock Retained earnings, 12/31 Total liabilities and equities $ 3,365,000PATRICK CORPORATION AND CONSOLIDATED SUBSIDIARY O'BRIEN Consolidation Worksheet For Year Ending December 31 Consolidation Entries Consolidated Accounts Patrick O'Brien Debit Credit Totals Revenues $ (1,372,500) $ (688,000) Cost of goods sold 366,000 312,000 Depreciation expense 94,500 93,600 Amortization expense 34,800 0 Income from O'Brien (271,300) 0 Net income $ (1,148,500) $ (282,400 $ 0 Retained earnings, 1/1 844,000) 318,000 Net income (above) (1, 148,500) (282,400) Dividends declared 165,000 103,000 Retained earnings, 12/31 $ (1,827,500) $ (497,400) $ Cash $ 249,000 $ 122,000 Receivables 414,000 85,200 Inventory 258,000 146,000 Investment in O'Brien 822,500 Trademarks 514,000 65,700 Customer relationships 0 0 Equipment (net) 958,000 328,000 Goodwill 0 Total assets $ 3,215,500 $ 746,900 $ 0 Liabilities (988,000) (149,500) Common stock (400,000) (100,000) Retained earnings (above) 1,827,500 (497,400) 0 Total liabilities and equity $ (3,215,500) $ (746,900) $ 0 $ 0 $ 0Patrick Corporation acquired 100 percent of O'Brien Company's outstanding common stock on January1, for $669,200 in cash. O'Brien reported net assets with a carrying amount of $433,000 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: Book Fair Values Values Trademarks (indefinite life) 0 07,000 0 221,000 Customer relationships (5year remaining life) 0 70,000 Equipment (10*year remaining life) 074,000 027,000 Any goodwill is considered to have an indefinite life with no impairment charges during the year. Following are nancial statements at the end ofthe rst 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 C'0rien Revenues (1,072,000) $ (000.000) Cost of goods sold 000,000 012.000 Depreciation expense 04,500 03.000 Amortization exnense 04,000 0 Income from O'Brien (271,000) 0 \"El 10'3\"\" w m Retained earnings 1/1 4' 044,000 0 010.000 Net income (1,140,500) (202.400) Dividends declared 105,000 103.000 Retained earnings 12/31 (1,027,500) 0 (407.400) Cash _ 240,000 0 122.000 Receivables 414,000 05.200 Inventory 250,000 140.000 Investment in C'0rien 022,500 0 Trademarks 514,000 05.700 Customer relationships 0 0 Equipment (net) 050,000 020.000 Goodwill 0 0 Total assets 0 0,215,500 0 740.000 Liabilities 0 000,000 0 140.500 Common stock (400,000) (100.000) Retained earnings 12/31 (1,027,500) (407.400) Total liabilities and equity $(0,215,500) $ (740.000) a. Which investment method did Patrick use to compute the $271,300 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 (lo) by producing a consolidation worksheet for Patrick and O'Brien for the year ending December 31