Question

On January 1, 2018 Casey Corporation exchanged $3,170,000 cash for 100 percent of the outstanding voting stock of Kennedy Corporation. Casey plans to maintain Kennedy as a wholly owned subsidiary with separate legal status and accounting information systems. e wa ownd At the acquisition date, Casey prepared the following fair-value allocation schedule

Answer 1

CASEY CORPORATION AND CONSOLIDATED SUBSIDIARY KENNEDY
CONSOLIDATED BALANCE SHEET
AS ON JANUARY 1, 2018
ASSETS		LIABILITIES & STOCKHOLDERS EQUITY
Cash	$       656,500	Accounts Payable	$          742,000
Accounts Receivable	$   1,551,000	Long Term Debt	$       6,640,000
Inventory	$   1,635,500	Common Stock	$       1,400,000
Building	$   8,064,000	Addl paid in Capital	$          500,000
Licencsing Agreement	$   3,232,000	Retained Earnings	$       7,100,000
Goodwill	$   1,243,000
Total Assets	$ 16,382,000	Total Liabilities & Equities	$    16,382,000