Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial And Managerial Accounting El Camino College Edition

Authors: Haka Bettner Carcello Williams

1st Edition

0077838246, 978-0077838249

More Books

Students also viewed these Accounting questions