The separate condensed balance sheets of Patrick Corporation and its wholly-owned subsidiary, Sean Corporation, are...
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Accounting
The separate condensed balance sheets of Patrick Corporation and its wholly-owned subsidiary, Sean Corporation, are as follows:
| BALANCE SHEETS | ||||||||
| December 31, 2020 | ||||||||
| Patrick | Sean | |||||||
| Cash | $ | 78,000 | $ | 66,000 | ||||
| Accounts receivable (net) | 130,000 | 38,000 | ||||||
| Inventories | 88,000 | 72,000 | ||||||
| Plant and equipment (net) | 632,000 | 276,000 | ||||||
| Investment in Sean | 464,000 | - | ||||||
| Total assets | $ | 1,392,000 | $ | 452,000 | ||||
| Accounts payable | 152,000 | 94,000 | ||||||
| Long-term debt | 116,000 | 32,000 | ||||||
| Common stock ($10 par) | 320,000 | 54,000 | ||||||
| Additional paid-in capital | 8,000 | |||||||
| Retained earnings | 804,000 | 264,000 | ||||||
| Total liabilities and shareholders' equity | $ | 1,392,000 | $ | 452,000 | ||||
Additional Information:
- On December 31, 2020, Patrick acquired 100 percent of Seans voting stock in exchange for $464,000.
- At the acquisition date, the fair values of Seans assets and liabilities equaled their carrying amounts, respectively, except that the fair value of certain items in Seans inventory were $24,000 more than their carrying amounts.
In the December 31, 2020, consolidated balance sheet of Patrick and its subsidiary, what amount of total assets should be reported?
Multiple Choice
-
$1,518,000
-
$1,982,000
-
$1,392,000
-
$1,372,000
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