Question

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 ($10 par) 340,000 Additional paid-in capital Retained earnings 788,000 Total liabilities and $1,388,000 shareholders' equity $ 414,800 90,000 24,000 62,000 10,000 228,000 $ 414,800 Additional Information: . On December 31, 2020, 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, 2020, consolidated balance sheet of Patrick and its subsidiary, what amount of total stockholders' equity should be reported? Multiple Choice CR < Prev of 8 Next

choices are

A) 1,110,000

B)1,128,000

C) 1,146,000

D) 1,336,000

Answer 1

The stockholder's equity of subsidiary company would be eliminated against investment in subsidiary company in parent's book while consolidating the data
Stockholder's equity in consolidated balance sheet would be only of parent company Patrick
Common stock	$340,000
Retained earnings	$788,000
Total stockholder's equity	$1,128,000
Thus, in consolidated balance sheet total consolidated stockholder's equity would be $1,128,000