Solution-What amount of total assets should be reported

What amount of total assets should be reported

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Reference no: EM132465873

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	$ ⁷⁰,⁰⁰⁰
Accounts receivable (net)	140,000	32,000
Inventories	100,000	62,000
Plant and equipment (net)	634,000	262,000
Investment in Sean	464,000
Total assets	S 1,410,000	$ 426,000
Accounts payable	144,000	96,000
Long-term debt	112,000	34,000
Common stock ($10 par)	328,000	68,000
Additional paid-in capital		14,e0e
Retained earnings	826,000	214,000
Total liabilities and shareholders' equity	$ 1,410,000	$ 426,000
Total liabilities and shareholders' equity

Additional Information:

Point 1: On December 31. 2017. Patrick acquired 100 percent of Sean's voting stock in exchange for $464.000.

Point 2: 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 $26.000 more than their carrying amounts.

Question 1: In the December 31. 2017. consolidated balance sheet of Patrick and its subsidiary, what amount of total assets should be reported?

Reference no: EM132465873

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What amount of total assets should be reported

Reference no: EM132465873

Reference no: EM132465873

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