The separate condensed balance sheets of Patrick Corporation and its wholly owned subsidiary, Sean Corporation, are...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The separate condensed balance sheets of Patrick Corporation and its wholly owned subsidiary, Sean Corporation, are as follows: BALANCE SHEETS December 31, 2017 Patrick 72,000 134,000 98,000 632,000 464,000 Sean $ 64,000 38,000 70,000 274,000 Cash Accounts receivable (net) Inventories Plant and equipment (net) Investment in Sean $1,400,000 $ 446,000 Total assets Accounts payable Long-term debt Common stock ($10 par) Additional paid-in capital Retained earnings Total liabilities and shareholders' equity 148,000 100,000 338,000 ৪০, 000 32,000 76,000 14,000 244,000 814,000 $1,400,000 $ 446,000 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 $22,000 more than their carrying amounts. In the December 31, 2017, consolidated balance sheet of Patrick and its subsidiary, what amount of total assets should be reported? The separate condensed balance sheets of Patrick Corporation and its wholly owned subsidiary, Sean Corporation, are as follows: BALANCE SHEETS December 31, 2017 Patrick 72,000 134,000 98,000 632,000 464,000 Sean $ 64,000 38,000 70,000 274,000 Cash Accounts receivable (net) Inventories Plant and equipment (net) Investment in Sean $1,400,000 $ 446,000 Total assets Accounts payable Long-term debt Common stock ($10 par) Additional paid-in capital Retained earnings Total liabilities and shareholders' equity 148,000 100,000 338,000 ৪০, 000 32,000 76,000 14,000 244,000 814,000 $1,400,000 $ 446,000 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 $22,000 more than their carrying amounts. In the December 31, 2017, consolidated balance sheet of Patrick and its subsidiary, what amount of total assets should be reported?
Expert Answer:
Answer rating: 100% (QA)
Particulars Amount Assets Cash 64000 Accounts receivable 38000 In... View the full answer
Related Book For
Fundamental Accounting Principles Volume 1
ISBN: 9781259259807
15th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
Posted Date:
Students also viewed these accounting questions
-
On January 1, 2010, Picante Corporation acquired 100 percent of the outstanding voting stock of Salsa Corporation for $1,765,000 cash. On the acquisition date, Salsa had the following balance sheet:...
-
On January 1, Prine, Inc., acquired 100 percent of Lydia Companys common stock for a fair value of $120,000,000 in cash and stock. Lydias assets and liabilities equaled their fair values except for...
-
On January 1, 2010, Innovus, Inc., acquired 100 percent of the common stock of ChipTech Company for $670,000 in cash and other fair-value consideration. ChipTechs fair value was allocated among its...
-
Builder Products, Incorporated, uses the weighted-average method in its process costing system. It manufactures a caulking compound that goes through three processing stages prior to completion....
-
If real GDP and aggregate expenditure are less than equilibrium expenditure, what happens to firms inventories? How do firms change their production? And what happens to real GDP?
-
What is one way that traditional performance measurement systems, which have historically been tied to financial reporting, may be dysfunctional?
-
Compare open cycle and closed cycle gas turbines.
-
Indicate whether each of the following statements constitutes a potential advantage (A), disadvantage (D), or neither (N) of using transfer prices for support department costs. a. Can put all support...
-
Find at least three potentially problematic data entries (cells) in this table, and decide how you would choose to address them. Would you remove the whole row? Somehow try to guess what the answer...
-
Jasper Junction Corporation (JJC) is an accrual basis, calendar-year entity that was created by Chao, Iris, and Nolan in 20X1. JJC furnishes the original incorporation agreement. The shareholiders'...
-
Due to a pre-existing contract, Recycle America Inc. has the opportunity to acquire 10,000 pounds of scrap aluminum and 2,500 pounds of scrap lead for $10,750. If the current market price for scrap...
-
Puerto Rico enacted a law that required specific labels on cement sold in Puerto Rico and imposed fines for any violations of these requirements. The law prohibited the sale or distribution of cement...
-
A state legislature enacted a statute that required any motorcycle operator or passenger on the states highways to wear a protective helmet. Jim Alderman, a licensed motorcycle operator, sued the...
-
Marguerite Eaton and Bobby Joe Waldrop moved into a mobile home on land owned by her son, James. Bobby Joe asked James to transfer that portion of the land to him and Marguerite, stating falsely that...
-
Lisa Goldstein reserved space for a marriage ceremony in a building owned by Orensanz Events, LLC, in New York City. The rental agreement provided that on cancellation of the event for any reason...
-
Vals Foods signs a contract to buy 1,500 pounds of basil from Sun Farms, a small organic herb grower, if an independent organization inspects the crop and certifies that it contains no pesticide or...
-
"In what ways do symbolic interactionists explore the nuanced dynamics of micro-level interactions and the construction of shared meanings to comprehend the formation and perpetuation of social...
-
Multiple Choice Questions: 1. The largest component of aggregate demand is? a. Government purchases. b. Net exports. c. Consumption. d. Investment. 2. A reduction in personal income taxes, other...
-
Carolyn owns a small business, Snappy Frames, that sells picture frames. Carolyn says, I let most of my employees be the CEO of their responsibilities. Trust is the key to my success! Once customers...
-
What is the usual meaning of NRV as it is used in determining the LCNRV for merchandise inventory?
-
Who pays the contributions to the Canada Pension Plan?
-
What is the quick (acid test) ratio? A. 0.9 B. 4.8 C. 0.8 D. 0.2 E. 1.7 Using the following balance sheet and income statement Balance sheet m Property 200 Trade payables Plant and equipment 300 Tax...
-
What is the receivables holding period? A. 21.6 days. B. 8 times. C. 19.4 days. D. 4.7 times. E. 28.2 days. Using the following balance sheet and income statement Balance sheet m Property 200 Trade...
-
The most appropriate measure of profitability from the point of view of the shareholders is: A. Return on equity. B. Return on capital employed. C. Return on non-current assets. D. Profit on sales.
Study smarter with the SolutionInn App