Prepare an acquisition-date consolidated balance sheet for Casey Corporation and its subsidiary Kennedy Corporation. (Negativeamounts should be indicated by a minus sign.)CASEY CORPORATION AND CONSOLIDATED SUBSIDIARY KENNEDYConsolidated Balance SheetJanuary 1, 2018Total assetsAssetsLiabilities and Stockholders' EquityTotal liabilities and equities On January 1, 2018 Casey Corporation exchanged $3,210,000 cash for 100 percent of the outstanding voting stock of KennedyCorporation. Casey plans to maintain Kennedy as a wholly owned subsidiary with separate legal status and accounting informationsystems.At the acquisition date, Casey prepared the following fair-value allocation schedule:Fair value of Kennedy (consideration transferred)Carrying amount acquiredExcess fair valueto buildings (undervalued)to licensing agreements (overvalued)to goodwill (indefinite life)AccountsCashAccounts receivableInventoryInvestment in KennedyBuildings (net)Licensing agreementsGoodwillTotal assetsAccounts payableLong-term debtCommon stockImmediately after closing the transaction, Casey and Kennedy prepared the following postacquisition balance sheets from theirseparate financial records.Additional paid-in capitalRetained earningsTotal liabilities and equities$Casey480,0001,420,0001,490,0003,210,0005,992,5000$ 393,000(193,000)(3,470,000)(3,000,000)$ 3,210,0002,600,000610,000Kennedy0$200,000$ 410,000166,500295,000126,5000249,500$ 12,842,000 $ 6,608,000$(372,000) $2,580,0003,440,0000(438,000)(3,570,000)(1,000,000)(500,000)(6,000,000)(1,100,000)$ (12,842,000) $ (6,608,000)

Consolidated Balance sheet: Consolidated balance sheet refers to the balance sheet prepared from the…

Prepare an acquisition-date consolidated balance sheet for Casey Corporation and its subsidiary Kennedy Corporation. ( amounts should be indicated by a minus sign.) CASEY CORPORATION AND CONSOLIDATED SUBSIDIARY KENNEDY Consolidated Balance Sheet January 1, 2018 Assets Liabilities and Stockholders' Equity

Prepare an acquisition-date consolidated balance sheet for Casey Corporation and its subsidiary Kennedy Corporation. ( amounts should be indicated by a minus sign.) CASEY CORPORATION AND CONSOLIDATED SUBSIDIARY KENNEDY Consolidated Balance Sheet January 1, 2018 Assets Liabilities and Stockholders' Equity

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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