On January 1, 2015, Casey Corporation exchanged $3,300,000 cash for 100 percent of the outstanding voting stock of Kennedy Corporation. Casey plans to maintain Kennedy as a wholly owned subsidiary with separate legal status and accounting information systems.

At the acquisition date, Casey prepared the following fair-value allocation schedule:

Immediately after closing the transaction, Casey and Kennedy prepared the following postacquisition balance sheets from their separate financial records.

Prepare a January 1, 2015, consolidated balance sheet for Casey Corporation and its subsidiary Kennedy Corporation.

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Fair value of Kennedy (consideration transferred)、…-… Carrying amount acquired Excess fair value 3,300,000 2,600,000 700,000 to buildings (undervalued) to licensing agreements (overvalued) to goodwill (indefinite life) 382,000 108,000) 274,000 $ 426,000 Accounts Casey Kennedy Cash Accounts receivable Inventory 1,655,000 1,310,000 3,300,000 6,315,000 347,000 263,500 Buildings (net) Licensing agreements. Goodwill 2,090,000 3,070,000 347,000 Total assets S13,384,000 5,943,000 Accounts payable Long-term debt. . Common stock .. Additional paid-in capital Retained earnings $ (394,000) S (393,000) (3,990,000) (2,950,000) (3,000,000) (1,000,000) (500,000) (6,000,000) (,100,000) $(13,384,000) $(5,943,000) .. Total liabilities and equities.