BALANCE SHEETS December 31, 2017 Patrick Sean $ 80,000 140,000 90,000 625,000 460,000 $ 60,000 25,000 50,000 280,000 Cash ... Accounts receivable (net) Inventories.. Plant and equipment (net) Investment in Sean.. $1,395,000 $415,000 $ 95,000 30,000 50,000 10,000 230,000 Total assets $ 160,000 110,000 Accounts payable. Long-term debt Common stock ($10 par). Additional paid-in capital. Retained earnings... 340,000 785,000 Total liabilities and shareholders' equity $1,395,000 $415,000
Problems 19 and 20 are based on the following information.
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 $460,000.
• 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
a. $1,375,000
b. $1,395,000
c. $1,520,000
d. $1,980,000
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