Question
[The following information applies to the questions displayed below.] The separate condensed balance sheets of Patrick Corporation and its wholly owned subsidiary, Sean Corporation, are
[The following information applies to the questions displayed below.]
The separate condensed balance sheets of Patrick Corporation and its wholly owned subsidiary, Sean Corporation, are as follows:
| BALANCE SHEETS | |||||||||||
| December 31, 2017 | |||||||||||
| Patrick | Sean | ||||||||||
| Cash | $ | 70,000 | $ | 56,000 | |||||||
| Accounts receivable (net) | 144,000 | 30,000 | |||||||||
| Inventories | 100,000 | 42,000 | |||||||||
| Plant and equipment (net) | 628,000 | 260,000 | |||||||||
| Investment in Sean | 440,000 | - | |||||||||
| Total assets | $ | 1,382,000 | $ | 388,000 | |||||||
| Accounts payable | 170,000 | 98,000 | |||||||||
| Long-term debt | 102,000 | 22,000 | |||||||||
| Common stock ($10 par) | 340,000 | 62,000 | |||||||||
| Additional paid-in capital | 14,000 | ||||||||||
| Retained earnings | 770,000 | 192,000 | |||||||||
| Total liabilities and shareholders' equity | $ | 1,382,000 | $ | 388,000 | |||||||
Additional Information:
On December 31, 2017, Patrick acquired 100 percent of Seans voting stock in exchange for $440,000.
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 $24,000 more than their carrying amounts.
In the December 31, 2017, consolidated balance sheet of Patrick and its subsidiary, what amount of total assets should be reported?
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The Cybersecurity Body Of Knowledge The ACM IEEE AIS IFIP Recommendations For A Complete Curriculum In Cybersecurity Internal Audit And IT Audit
Authors: Daniel Shoemaker, Anne Kohnke, Ken Sigler
1st Edition
1032400218, 978-1032400211
