Question

Required information

[The following information applies to the questions displayed below.]

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	$	80,000			$	42,000
Accounts receivable (net)		140,000				28,000
Inventories		86,000				60,000
Plant and equipment (net)		640,000				278,000
Investment in Sean		454,000				-
Total assets	$	1,400,000			$	408,000
Accounts payable		172,000				86,000
Long-term debt		100,000				26,000
Common stock ($10 par)		306,000				70,000
Additional paid-in capital						14,000
Retained earnings		822,000				212,000
Total liabilities and shareholders' equity	$	1,400,000			$	408,000

Additional Information:

• On December 31, 2017, Patrick acquired 100 percent of Sean’s voting stock in exchange for $454,000.
• 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 $26,000 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?

rev: 05_16_2017_QC_CS-88999

• $1,380,000

• $1,400,000

• $1,512,000

• $1,966,000

• ................................

• Required information

  [The following information applies to the questions displayed below.]

  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	$	80,000			$	42,000
  Accounts receivable (net)		140,000				28,000
  Inventories		86,000				60,000
  Plant and equipment (net)		640,000				278,000
  Investment in Sean		454,000				-
  Total assets	$	1,400,000			$	408,000
  Accounts payable		172,000				86,000
  Long-term debt		100,000				26,000
  Common stock ($10 par)		306,000				70,000
  Additional paid-in capital						14,000
  Retained earnings		822,000				212,000
  Total liabilities and shareholders' equity	$	1,400,000			$	408,000

  Additional Information:

• On December 31, 2017, Patrick acquired 100 percent of Sean’s voting stock in exchange for $454,000.
• 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 $26,000 more than their carrying amounts.

• $1,102,000

• $1,128,000

• $1,154,000

• $1,340,000

• In the December 31, 2017, consolidated balance sheet of Patrick and its subsidiary, what amount of total stockholders’ equity should be reported?

Answer 1