Question
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
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 $ 74,000 $ 72,000 Accounts receivable (net) 146,000 40,000 Inventories 98,000 40,000 Plant and equipment (net) 636,000 266,000 Investment in Sean 446,000 - Total assets $ 1,400,000 $ 418,000 Accounts payable 144,000 80,000 Long-term debt 116,000 36,000 Common stock ($10 par) 302,000 40,000 Additional paid-in capital 10,000 Retained earnings 838,000 252,000 Total liabilities and shareholders' equity $ 1,400,000 $ 418,000 Additional Information: On December 31, 2017, Patrick acquired 100 percent of Seans voting stock in exchange for $446,000. 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 $18,000 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? In the December 31, 2017, consolidated balance sheet of Patrick and its subsidiary, what amount of total stockholders equity should be reported?
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