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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 | $ | 80,000 | $ | 56,000 | |||||||
Accounts receivable (net) | 140,000 | 40,000 | |||||||||
Inventories | 88,000 | 50,000 | |||||||||
Plant and equipment (net) | 624,000 | 260,000 | |||||||||
Investment in Sean | 474,000 | - | |||||||||
Total assets | $ | 1,406,000 | $ | 406,000 | |||||||
Accounts payable | 178,000 | 98,000 | |||||||||
Long-term debt | 100,000 | 34,000 | |||||||||
Common stock ($10 par) | 338,000 | 80,000 | |||||||||
Additional paid-in capital | 8,000 | ||||||||||
Retained earnings | 790,000 | 186,000 | |||||||||
Total liabilities and shareholders' equity | $ | 1,406,000 | $ | 406,000 | |||||||
Additional Information:
- On December 31, 2017, Patrick acquired 100 percent of Seans voting stock in exchange for $474,000.
- 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. 1)In the December 31, 2017, consolidated balance sheet of Patrick and its subsidiary, what amount of total assets should be reported? 2)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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