shows what is correct or incorrect for the work you have completed so far. It does not indicate con 1 On January 1, 2021, Casey Corporation exchanged $3,327,000 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 fair-value allocation schedule: Fair value of Kennedy (consideration transferred) $ 3,327,000 Carrying amount acquired 2,600,000 Excess fair value 727,000 to buildings (undervalued) $ 351,000 to licenning agreemento overvalued) (104,000) 247,000 to goodwill (indefinite lite) 480,000 $ $ Immediately after closing the transaction. Casey and Kennedy prepared the following postacqulsition balance sheets from their separate financial records (credit balances in parentheses). Accounts Casey Kennedy Cash 456,000 5 136,500 Accounts receivable 1,450,000 321,000 Inventory 1,335,000 884,500 Investment in Kennedy 3,327,000 0 Buildings (net) 6,060,000 2,150,000 Licensing agreements 0 3,030,000 Goodwill 259,000 0 Total assets $ 12,887,000 5 6,522,000 Accounts payable $ (377,000) $ (462,000) Long-term debt (3,510,000) (3,460,000) Common stock (3,000,000) (1,000,000) 0 Additional paid-in capital (500,000) Retained earnings (6.000.000) (1.100.000) Total liabilities and equities $ (12,887,000) $ (6,322,000) Prepare an acquisition date consolidated balance sheet for Casey Corporation and its subsidiary Kennedy Corporation. (For accounts 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.) Consolidated $ 592 500 1.771,000 2.219,500 Answer is not complete. CASEY CORPORATION AND CONSOLIDATED SUBSIDIARY KENNEDY Worksheet for a Consolidated Balance Sheet January 1, 2021 Adjust. & Elim Casey Kennedy Debit Credit Cash 456,000 136,500 Accounts receivable 1,450,000 321,000 Inventory 1,335,000 884,500 Investment in ker 3,327,000 2,600,000 Buildings (net) 6,060,000 2,150,000 351,000 Licensing agreements 3,030,000 104,000 Goodwill 259,000 480.000 Total assets $ 12,887,000 $ 6,522,000 Accounts payable $ (377,000) (462,000) Long-term debt (3,510,000) (3.460,000) Common stock (3,000,000) (1,000,000) 1,000,000 Additional paid-in capital (500,000) 500,000 (6,000,000) Retained earnings (1.100,000) 1,100,000 $ 831,000 $ 5,304,000 Total liabilities and equities (12,887.000) (6 522.000) 8,561,000 2,926.000 $ 16,070,000 (639,000) (6,970,000) (3,000,000) (6,000,000) S (16,800,000)
