19. Answer : Option C ; $ 1,520,000
Explanation;
Patrick's Assets | $1,395,000 |
Less: Investment in Sean | $(460,000) |
Sean's Asset | $415,000 |
Inventory Write up | $25,000 |
Goodwill from the combination * | $145,000 |
Total Consolidated Asset | $1,520,000 |
* Calculation of Good will
Consideration Transferred | $460,000 |
Fair Value of Net Identification Asset** | $315,000 |
Good Will | $145,000 |
**
Sean's Corporations Net asset fair value | $415,000 | |
Accounts Payable | $95,000 | |
Long Term Debt | $30,000 | $125,000 |
Sean's Net Asset | $290,000 | |
Inventory Adjustment for fair value | $25,000 | |
Fair Value of Sean's Net Asset | $315,000 |
20. Answer : Option B ; $ 1,125,000
Common Stock + Retained Earnings
$340,000 + $ 785,000 = $ 1,125,000
Stockholder's Equity = $1,125,000
19 and 20 with solutions BALANCE SHEETS December 31, 2017 Seon 259 Patrick $ 80,000 140,000...
$ Sean 72, 38,800 44,099 262,000 BALANCE SHEETS December 31, 2017 Patrick Cash 74,000 Accounts receivable (net) 146,000 Inventories 82,000 Plant and equipment (net) 640,089 Investment in Sean 476,000 Total assets $ 1,418,800 Accounts payable 168,888 Long-term debt 120,000 Common stock ($10 par) 332,000 Additional paid-in capital Retained earnings 806, 889 Total liabilities and shareholders' 1,418,000 equity $ 416,00 94,000 38,000 54,000 14,000 216,000 S 416,000 Additional Information: . On December 31, 2017, Patrick acquired 100 percent of Sean's voting...
The separate condensed balance sheets of Patrick Corporation and its wholly owned subsidiary, Sean Corporation, are as follows: $ Sean 70,000 32,000 62,000 262,000 BALANCE SHEETS December 31, 2017 Patrick Cash 72,000 Accounts receivable (net) 140,000 Inventories 100,000 Plant and equipment (net) 634,000 Investment in Sean 464,000 Total assets $ 1,410,000 Accounts payable 144,000 Long-term debt 112,000 Common stock ($10 par) 328,000 Additional paid-in capital Retained earnings 826,000 Total liabilities and shareholders' $ 1,410,000 equity $ 426,000 96,000 34,000 68,000...
The separate condensed balance sheets of Patrick Corporation and its wholly owned subsidiary, Sean Corporation, are as follows: $ Sean 70,000 32,000 62,000 262,000 BALANCE SHEETS December 31, 2017 Patrick Cash 72,000 Accounts receivable (net) 140,000 Inventories 100,000 plant and equipment (net) 634,000 Investment in Sean 464,000 Total assets $ 1,410,000 Accounts payable 144,000 Long-term debt 112.000 Common stock ($10 par) 328,000 Additional paid-in capital Retained earnings 826,000 Total liabilities and shareholders $ 1,410,000 equity $426,000 96,000 34,000 68,000 14,000...
The separate condensed balance sheets of Patrick Corporation and its wholly owned subsidiary, Sean Corporation, are as follows: $ Sean 70,000 32,000 62,000 262,000 BALANCE SHEETS December 31, 2017 Patrick Cash 72,000 Accounts receivable (net) 140,000 Inventories 100,000 plant and equipment (net) 634,000 Investment in Sean 464,000 Total assets $ 1,410,000 Accounts payable 144,000 Long-term debt 112.000 Common stock ($10 par) 328,000 Additional paid-in capital Retained earnings 826,000 Total liabilities and shareholders $ 1,410,000 equity $426,000 96,000 34,00 68,000 14,000...
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'...
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'...
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, 2020 Patrick Sean Cash $ 70,000 $ 50,000 Accounts receivable (net) 136,000 34,000 Inventories 94,800 52,800 Plant and equipment (net) 620,000 264,000 Investment in Sean 440,000 Total assets $1,360,000 $ 400,000 Accounts payable 144,000 82,000 Long-term debt 106,000 34,000 Common stock ($10 par) 330,000 64,000 Additional paid in...
choices are A) 1,368,000 B) 1,388,000 C) 1,502,000 D) 1,974,000 Saved 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: Sean $ 72,000 24,000 50,000 268,000 BALANCE SHEETS December 31, 2020 Patrick Cash $ 72,000 Accounts receivable (net) 130,000 Inventories 80,000 Plant and equipment (net) 634,000 Investment in Sean 472,000 Total assets $1,388,000 Accounts payable 160,000 Long-term debt 100,000 Common stock...
Required information Use the following information to answer questions 19-20 [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 $ 74,000 $ 52,000 Accounts receivable (net) 130,000 40,000 Inventories 86,000 72,000 Plant and equipment (net) 622,000 278,000 Investment in Sean 468,000 - Total assets $ 1,380,000 $ 442,000 Accounts payable 156,000 84,000 Long-term debt...
choices are A) 1,110,000 B)1,128,000 C) 1,146,000 D) 1,336,000 Required information (The following informe on applies to the questions displayed below.) The separate conde sed balance sheets of Patrick Corporation and its wholly-owned subsidiary, Sean Corporation, are as follows: Sean $ 72,000 24,000 50,000 268,000 BALANCE SHEETS December 31, 2020 Patrick Cash $ 72,000 Accounts receivable (net) 130,000 Inventories 80,000 Plant and equipment (net) 634,000 Investment in Sean 472,000 Total assets $1,388,000 Accounts payable 160,000 Long-term debt 100,000 Connon stock...