The separate condensed balance sheets of Patrick Corporation and its wholly-owned subsidiary, Sean Corporation, are asfollows:CashAccounts receivable (net)InventoriesBALANCE SHEETSDecember 31, 2020Plant and equipment (net)Investment in SeanTotal assetsAccounts payableLong-term debtCommon stock ($10 par)Additional paid-in capitalRetained earningsTotal liabilities andshareholders' equityAdditional Information:Patrick76,000148,00096,000632,000462,000$1,414,000$Sean$ 56,00024,00080,000270,000$430,00098,00022,00066,0008,000832,000236,000$1,414,000 $ 430,000142,000110,000330,000• On December 31, 2020, Patrick acquired 100 percent of Sean's voting stock in exchange for $462,000.• 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 $20,000 more than their carrying amounts.In the December 31, 2020, consolidated balance sheet of Patrick and its subsidiary, what amount of total assets should be reported?

Consolidation of fiinancial statement means combing the balance sheet and profit and loss account…

The separate condensed balance sheets of Patrick Corporation and its wholly-owned subsidiary, Sean Corporation, are as follows: Cash Accounts receivable (net) Inventories BALANCE SHEETS December 31, 2020 Plant and equipment (net) Investment in Sean Total assets Accounts payable Long-term debt Common stock ($10 par) Additional paid-in capital Retained earnings Total liabilities and shareholders' equity Additional Information: $ Patrick 76,000 148,000 96,000 632,000 462,000 $1,414,000 142,000 110,000 330,000 832,000 $1,414,000 Sean $ 56,000 24,000 80,000 270,000 $ 430,000 98,000 22,000 66,000 8,000 236,000 $430,000 • On December 31, 2020, Patrick acquired 100 percent of Sean's voting stock in exchange for $462,000. • 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 $20,000 more than their carrying amounts. In the December 31, 2020, consolidated balance sheet of Patrick and its subsidiary, what amount of total assets should be reported?

The separate condensed balance sheets of Patrick Corporation and its wholly-owned subsidiary, Sean Corporation, are as follows: Cash Accounts receivable (net) Inventories BALANCE SHEETS December 31, 2020 Plant and equipment (net) Investment in Sean Total assets Accounts payable Long-term debt Common stock ($10 par) Additional paid-in capital Retained earnings Total liabilities and shareholders' equity Additional Information: $ Patrick 76,000 148,000 96,000 632,000 462,000 $1,414,000 142,000 110,000 330,000 832,000 $1,414,000 Sean $ 56,000 24,000 80,000 270,000 $ 430,000 98,000 22,000 66,000 8,000 236,000 $430,000 • On December 31, 2020, Patrick acquired 100 percent of Sean's voting stock in exchange for $462,000. • 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 $20,000 more than their carrying amounts. In the December 31, 2020, consolidated balance sheet of Patrick and its subsidiary, what amount of total assets should be reported?

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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