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

Additional Information:∙ On December 31, 2023, Patrick acquired 100 percent of Sean’s voting stock in exchange for $460,000.∙ 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 $25,000 more than their carrying amounts.

In the December 31, 2023, consolidated balance sheet of Patrick and its subsidiary, what amount of total assets should be reported?

a. $1,375,000b. $1,395,000c. $1,520,000d. $1,980,000

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Cash Accounts receivable (net) Inventories ..... Plant and equipment (net) Investment in Sean Total assets .... Accounts payable Long-term debt. Common stock ($10 par) BALANCE SHEETS December 31, 2023 Additional paid-in capital Retained earnings ... Total liabilities and shareholders' equity Patrick $ 80,000 140,000 90,000 625,000 460,000 $1,395,000 $ 160,000 110,000 340,000 785,000 $1,395,000 Sean $ 60,000 25,000 50,000 280,000 $415,000 $ 95,000 30,000 50,000 10,000 230,000 $415,000