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BALANCE SHEETS December 31, 2017 Patrick Sean Cash $ 80,000 $ 60,000 Accounts receivable (net) Inventories . Plant and equipment (net) Investment in Sean.. 140,000 25,000 90,000 50,000 625,000 280,000 460,000 Total assets $1,395,000 $415,000 $ 160,000 $ 95,000 Accounts payable. Long-term debt Common stock ($10 par). Additional paid-in capital. 110,000 30,000 340,000 50,000 10,000 Retained earnings... 785,000 230,000 Total liabilities and shareholders' equity $1,395,000 $415,000

BALANCE SHEETS December 31, 2017 Patrick Sean Cash $ 80,000 $ 60,000 Accounts receivable (net) Inventories . Plant and equipment (net) Investment in Sean.. 140,000 25,000 90,000 50,000 625,000 280,000 460,000 Total assets $1,395,000 $415,000 $ 160,000 $ 95,000 Accounts payable. Long-term debt Common stock ($10 par). Additional paid-in capital. 110,000 30,000 340,000 50,000 10,000 Retained earnings... 785,000 230,000 Total liabilities and shareholders' equity $1,395,000 $415,000

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN:9781337902571
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter3: Financial Statements, Cash Flow, And Taxes
Section: Chapter Questions
Problem 12P
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The separate condensed balance sheets of Patrick Corporation and its wholly owned subsidiary, Sean Corporation, are as follows:

Additional Information:

  • On December 31, 2017, Patrick acquired 100 percent of Sean’s voting stock in exchange for $500,000.

  • At the acquisition date, the fair values of Sean’s assets and liabilities equaled their carrying amounts, respectively, except that the fair value of certain items in Sean’s inventory were $25,000 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?

BALANCE SHEETS December 31, 2017 Patrick Sean Cash $ 80,000 $ 60,000 Accounts receivable (net) Inventories . Plant and equipment (net) Investment in Sean.. 140,000 25,000 90,000 50,000 625,000 280,000 460,000 Total assets $1,395,000 $415,000 $ 160,000 $ 95,000 Accounts payable. Long-term debt Common stock ($10 par). Additional paid-in capital. 110,000 30,000 340,000 50,000 10,000 Retained earnings... 785,000 230,000 Total liabilities and shareholders' equity $1,395,000 $415,000
Transcribed Image Text:BALANCE SHEETS December 31, 2017 Patrick Sean Cash $ 80,000 $ 60,000 Accounts receivable (net) Inventories . Plant and equipment (net) Investment in Sean.. 140,000 25,000 90,000 50,000 625,000 280,000 460,000 Total assets $1,395,000 $415,000 $ 160,000 $ 95,000 Accounts payable. Long-term debt Common stock ($10 par). Additional paid-in capital. 110,000 30,000 340,000 50,000 10,000 Retained earnings... 785,000 230,000 Total liabilities and shareholders' equity $1,395,000 $415,000
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