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Question: the separate condensed balance sheets of patrick corporation and its...

Question details

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 $ 72,000 $ 72,000
Accounts receivable (net) 130,000 24,000
Inventories 80,000 50,000
Plant and equipment (net) 634,000 268,000
Investment in Sean 472,000 -
Total assets $ 1,388,000 $ 414,000
Accounts payable 160,000 90,000
Long-term debt 100,000 24,000
Common stock ($10 par) 340,000 62,000
Additional paid-in capital 10,000
Retained earnings 788,000 228,000
Total liabilities and shareholders' equity $ 1,388,000 $ 414,000

Additional Information:

  • On December 31, 2017, Patrick acquired 100 percent of Sean’s voting stock in exchange for $472,000.
  • 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 $18,000 more than their carrying amounts.

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

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