The separate condensed balance sheets of Patrick Corporation and its wholly owned subsidiary, Sean Corporation, are as follows: Additional...
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The separate condensed balance sheets of Patrick Corporation and its wholly owned subsidiary, Sean

Corporation, are as follows:

 

Screen Shot 2020-02-11 at 12.46.01 AM.png


Additional Information:

  • On December 31, 2017, Patrick acquired 100 percent of Sean's voting stock in exchange for $464,000.
  • 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 $24,000 more than their carrying amounts.

(a) In the December 31, 2017, consolidated balance sheet of Patrick and its subsidiary, what amount of total assets should be reported?

(b)In the December 31, 2017, consolidated balance sheet of Patrick and its subsidiary, what amount of total stockholders' equity should be reported?

Screen Shot 2020-02-11 at 12.46.01 AM.png

Top Answer

a. Total Assets = $... View the full answer

Patrick Corporation.png

Total consideration
464,000
Less: FVNA of Sean
Cash
66,000
Accounts receivable, net
38,000
Inventories
96,000
Plant and equipment, net
276,000
Accounts payable
(94,000)
Long-term debt
(000'ZE)...

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