BALANCE SHEETS December 31, 2017 Patrick Sean Cash $ 80,000 $ 60,000 Accounts receivable (net) Inventories . Plant and equipment (net) Investment in Sean.. 140,000 25,000 90,000 50,000 625,000 280,000 460,000 Total assets $1,395,000 $415,000 $ 160,000 $ 95,000 Accounts payable. Long-term debt Common stock ($10 par). Additional paid-in capital. 110,000 30,000 340,000 50,000 10,000 Retained earnings... 785,000 230,000 Total liabilities and shareholders' equity $1,395,000 $415,000
BALANCE SHEETS December 31, 2017 Patrick Sean Cash $ 80,000 $ 60,000 Accounts receivable (net) Inventories . Plant and equipment (net) Investment in Sean.. 140,000 25,000 90,000 50,000 625,000 280,000 460,000 Total assets $1,395,000 $415,000 $ 160,000 $ 95,000 Accounts payable. Long-term debt Common stock ($10 par). Additional paid-in capital. 110,000 30,000 340,000 50,000 10,000 Retained earnings... 785,000 230,000 Total liabilities and shareholders' equity $1,395,000 $415,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problems 19 and 20 are based on the following information. The separate condensed balance sheets of Patrick Corporation and its wholly owned subsidiary, Sean Corporation, are as follows:
Additional Information:
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On December 31, 2017, Patrick acquired 100 percent of Sean’s voting stock in exchange for $500,000.
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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.
19. In the December 31, 2017, consolidated
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