Return to ques Pot Inc. acquired all Seed Inc.'s outstanding $29 par common stock on December 31, 20X3, in exchange for 43,000 shares of its $29 par common stock. Pot's common stock closed at $58.50 per share on a national stock exchange on December 31, 20X3. Both corporations continued to operate as separate businesses maintaining separate accounting records with years ending December 31. On December 31, 20X4, after year-end adjustments and the closing of nominal accounts, the companles had condensed balance sheet accounts. Pot Inc. Seed Inc. Assets Cash Accounts & Other Receivables Inventories Land Depreciable Assets (net) Investment in Seed Inc. Long-Term Investments & Other Assets Total Assets $ 840,000 2,154,000 2,312,000 661,000 4,594,000 2,934,500 867,000 $14,362,500 $ 333,000 47,000 1,055,000 08,000 1,991,000 392,000 $4,926,000 Liabilities and Stockholders' Equity Accounts Payable and Other Current Liabilities Long-Term Debt Common Stock, $29 Par Value Additional Paid-In Capital Retained Earnings Total Liabilities and Stockholders' Equity $ 2,448,000 882,000 3,431,000 1, 268,500 5,333,000 $14,362,500 $1,129,000 1,299,000 1, 247,000 179,000 1,072,000 $4,926,000 Additional Information 1. Pot uses the equity-method of accounting for its Investment In Seed. 2. On December 31, 20X3, Seed's assets and liabilitles had falr values equal to the book balances with the exception of land, which had a falr value of $744,500. Seed had no land transactions In 20X4. 3. On June 15, 20X4, Seed pald a cash dividend of $4 per share on Its common stock. 4. On December 10, 20X4, Pot paid a cash dividend totaling $258,000 on its common stock. 5. On December 31, 20X3, Immediately before the combination, the stockholders' equity balance was: Common Stock Additional Paid-In Capital Retained Earnings Pot Inc. $2,184,000 1, 653,000 4,101, 000 $7,943,000 Seed Inc. $1,247,000 179,000 6 53,000 $2,079,000 6. The 20x4 net Income amounts according to the separate books of Pot and Seed were $899,000 (exclusive of equity In Seed's earnings) and $591,000, respectively. Return to question Answer is not complete. POT INC. AND SUBSIDIARY Consolidated Balance Sheet Worksheet December 31, 20X4 Consolidation Entries Pot Inc. Seed Inc. DR CR Consolidated $ Assets Cash Accounts & other receivables Inventory Land Depreciable assets (net) Investment in Seed Inc. Long-term investments & other assets Total Assets $ 840,000 2,154,000 2,312,000 661,000 4,594,000 2,934,500 867,000 $14,362,500 333,000 847,000 1,055,000 308,000 1,991,000 $ 1,173,000 3,001,000 3,367,000 969,000 6,585,000 0 1,259,000 $ 16,354,000 0X 2,934,500 392,000 $ 4,926,000 $ 0 $ 2,934,500 Liabilities & Stockholders' Equity Accounts payable & other current liabilities Long-term debt Common stock Additional Paid-in capital Retained earnings Total Liabilities & Equity $ 2,448,000 1,882,000 3,431,000 1,268,500 5,333,000 $14,362,500 $ 1,129,000 1,299,000 1,247,000 179,000 1,072,000 $ 4,926,000 1,247,000 179,000 1,072,000 X $ 2,498,000 $ 3,577,000 3,181,000 3,431,000 1,268,500 5,333,000 $ 16,790,500 $ 0 Return to ques Pot Inc. acquired all Seed Inc.'s outstanding $29 par common stock on December 31, 20X3, in exchange for 43,000 shares of its $29 par common stock. Pot's common stock closed at $58.50 per share on a national stock exchange on December 31, 20X3. Both corporations continued to operate as separate businesses maintaining separate accounting records with years ending December 31. On December 31, 20X4, after year-end adjustments and the closing of nominal accounts, the companles had condensed balance sheet accounts. Pot Inc. Seed Inc. Assets Cash Accounts & Other Receivables Inventories Land Depreciable Assets (net) Investment in Seed Inc. Long-Term Investments & Other Assets Total Assets $ 840,000 2,154,000 2,312,000 661,000 4,594,000 2,934,500 867,000 $14,362,500 $ 333,000 47,000 1,055,000 08,000 1,991,000 392,000 $4,926,000 Liabilities and Stockholders' Equity Accounts Payable and Other Current Liabilities Long-Term Debt Common Stock, $29 Par Value Additional Paid-In Capital Retained Earnings Total Liabilities and Stockholders' Equity $ 2,448,000 882,000 3,431,000 1, 268,500 5,333,000 $14,362,500 $1,129,000 1,299,000 1, 247,000 179,000 1,072,000 $4,926,000 Additional Information 1. Pot uses the equity-method of accounting for its Investment In Seed. 2. On December 31, 20X3, Seed's assets and liabilitles had falr values equal to the book balances with the exception of land, which had a falr value of $744,500. Seed had no land transactions In 20X4. 3. On June 15, 20X4, Seed pald a cash dividend of $4 per share on Its common stock. 4. On December 10, 20X4, Pot paid a cash dividend totaling $258,000 on its common stock. 5. On December 31, 20X3, Immediately before the combination, the stockholders' equity balance was: Common Stock Additional Paid-In Capital Retained Earnings Pot Inc. $2,184,000 1, 653,000 4,101, 000 $7,943,000 Seed Inc. $1,247,000 179,000 6 53,000 $2,079,000 6. The 20x4 net Income amounts according to the separate books of Pot and Seed were $899,000 (exclusive of equity In Seed's earnings) and $591,000, respectively. Return to question Answer is not complete. POT INC. AND SUBSIDIARY Consolidated Balance Sheet Worksheet December 31, 20X4 Consolidation Entries Pot Inc. Seed Inc. DR CR Consolidated $ Assets Cash Accounts & other receivables Inventory Land Depreciable assets (net) Investment in Seed Inc. Long-term investments & other assets Total Assets $ 840,000 2,154,000 2,312,000 661,000 4,594,000 2,934,500 867,000 $14,362,500 333,000 847,000 1,055,000 308,000 1,991,000 $ 1,173,000 3,001,000 3,367,000 969,000 6,585,000 0 1,259,000 $ 16,354,000 0X 2,934,500 392,000 $ 4,926,000 $ 0 $ 2,934,500 Liabilities & Stockholders' Equity Accounts payable & other current liabilities Long-term debt Common stock Additional Paid-in capital Retained earnings Total Liabilities & Equity $ 2,448,000 1,882,000 3,431,000 1,268,500 5,333,000 $14,362,500 $ 1,129,000 1,299,000 1,247,000 179,000 1,072,000 $ 4,926,000 1,247,000 179,000 1,072,000 X $ 2,498,000 $ 3,577,000 3,181,000 3,431,000 1,268,500 5,333,000 $ 16,790,500 $ 0