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)
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
Related questions
Question
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcdbbc10f-b964-43c9-8f91-f0618af1a1a4%2F382a2ff1-0b05-4179-a382-ee50a1388e64%2Fpxldhxm.png&w=3840&q=75)
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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