The separate condensed balance sheets of Patrick Corporation and its wholly owned subsidiary, Sean Corporation, are as follows: BALANCE SHEETS December 31, 2017 Patrick Sean Cash $ 72,000 $ 72,000 Accounts receivable (net) 130,000 24,000 Inventories 80,000 50,000 Plant and equipment (net) 634,000 268,000 Investment in Sean 472,000 - Total assets $ 1,388,000 $ 414,000 Accounts payable 160,000 90,000 Long-term debt 100,000 24,000 Common stock ($10 par) 340,000 62,000 Additional paid-in capital 10,000 Retained earnings 788,000 228,000 Total liabilities and shareholders' equity $ 1,388,000 $ 414,000 Additional Information: On December 31, 2017, Patrick acquired 100 percent of Sean’s voting stock in exchange for $472,000. 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 $18,000 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?
The separate condensed balance sheets of Patrick Corporation and its wholly owned subsidiary, Sean Corporation, are as follows: BALANCE SHEETS December 31, 2017 Patrick Sean Cash $ 72,000 $ 72,000 Accounts receivable (net) 130,000 24,000 Inventories 80,000 50,000 Plant and equipment (net) 634,000 268,000 Investment in Sean 472,000 - Total assets $ 1,388,000 $ 414,000 Accounts payable 160,000 90,000 Long-term debt 100,000 24,000 Common stock ($10 par) 340,000 62,000 Additional paid-in capital 10,000 Retained earnings 788,000 228,000 Total liabilities and shareholders' equity $ 1,388,000 $ 414,000 Additional Information: On December 31, 2017, Patrick acquired 100 percent of Sean’s voting stock in exchange for $472,000. 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 $18,000 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The separate condensed balance sheets of Patrick Corporation and its wholly owned subsidiary, Sean Corporation, are as follows:
| BALANCE SHEETS | |||||||
| December 31, 2017 | |||||||
| Patrick | Sean | ||||||
| Cash | $ | 72,000 | $ | 72,000 | |||
| 130,000 | 24,000 | ||||||
| Inventories | 80,000 | 50,000 | |||||
| Plant and equipment (net) | 634,000 | 268,000 | |||||
| Investment in Sean | 472,000 | - | |||||
| Total assets | $ | 1,388,000 | $ | 414,000 | |||
| Accounts payable | 160,000 | 90,000 | |||||
| Long-term debt | 100,000 | 24,000 | |||||
| Common stock ($10 par) | 340,000 | 62,000 | |||||
| Additional paid-in capital | 10,000 | ||||||
| 788,000 | 228,000 | ||||||
| Total liabilities and shareholders' equity | $ | 1,388,000 | $ | 414,000 | |||
Additional Information:
- On December 31, 2017, Patrick acquired 100 percent of Sean’s voting stock in exchange for $472,000.
- 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 $18,000 more than their carrying amounts.
In the December 31, 2017, consolidated
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