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 | $ | 70,000 | $ | 70,000 | |||||||
| Accounts receivable (net) | 138,000 | 20,000 | |||||||||
| Inventories | 92,000 | 50,000 | |||||||||
| Plant and equipment (net) | 626,000 | 276,000 | |||||||||
| Investment in Sean | 470,000 | - | |||||||||
| Total assets | $ | 1,396,000 | $ | 416,000 | |||||||
| Accounts payable | 162,000 | 82,000 | |||||||||
| Long-term debt | 108,000 | 40,000 | |||||||||
| Common stock ($10 par) | 322,000 | 40,000 | |||||||||
| Additional paid-in capital | 8,000 | ||||||||||
| Retained earnings | 804,000 | 246,000 | |||||||||
| Total liabilities and shareholders' equity | $ | 1,396,000 | $ | 416,000 | |||||||
Additional Information:
- On December 31, 2017, Patrick acquired 100 percent of Seans voting stock in exchange for $470,000.
- 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 $22,000 more than their carrying amounts.
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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Principles Of Auditing And Other Assurance Services
Authors: Ray Whittington, Kurt Pany
22nd Edition
126059808X, 978-1260598087
