On January 1, 2018 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:

Fair value of Kennedy (consideration transferred) . . . . . . . . . . . . . . . . . . . . . $3,300,000

Carrying amount acquired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2,600,000

Excess fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 700,000

To buildings (undervalued) . . . . . . . . . . . . . . . . . . . . . . . . . $ 382,000

To licensing agreements (overvalued) . . . . . . . . . . . . . . . (108,000). . . . . . .. 274,000

To goodwill (indefinite life) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 426,000

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

Prepare an acquisition-date consolidated balance sheet for Casey Corporation and its subsidiary Kennedy Corporation?

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Accounts Casey Kennedy Cash Accounts receivable.... Inventory Investment in Kennedy Buildings (net) Licensing agreements.. Goodwil $ 457,000 1,655,000 1,310,000 3,300,000 6,315,000 $ 172,500 347,000 263,500 2,090,000 3,070,000 347,000 $13,384,000 Total assets 5,943,000 Long-term debt Common stock Additional paid-in capital $ (394,000) (3,990,000) (3,000,000) $ (393,000) (2,950,000) (1,000,000) (500,000) 1,100,000) 6,000,000) Total liabilities and equities