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 $ 80,000 $ 60,000 Accounts receivable (net) 140,000 25,000 Inventories 90,000 50,000 Plant and equipment (net) 625,000 280,000 Investment in Sean 460,000 - Total assets $ 1,395,000 $ 415,000 Accounts payable 160,000 95,000 Long-term debt 110,000 30,000 Common stock ($10 par) 340,000 50,000 Additional paid-in capital 10,000 Retained earnings 785,000 230,000 Total liabilities and shareholders' equity $ 1,395,000 $ 415,000 ________________________________________ Additional Information: • On December 31, 2017, Patrick acquired 100 percent of Sean’s voting stock in exchange for $460,000. • 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 $25,000 more than their carrying amounts. In the December 31, 2017, consolidated balance sheet of Patrick and its subsidiary, what amount of total assets should be reported? rev: 05_16_2017_QC_CS-88999 Multiple Choice $1,375,000 $1,395,000 $1,520,000 Correct $1,980,000

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	$	80,000			$	60,000
Accounts receivable (net)		140,000				25,000
Inventories		90,000				50,000
Plant and equipment (net)		625,000				280,000
Investment in Sean		460,000				-
Total assets	$	1,395,000			$	415,000
Accounts payable		160,000				95,000
Long-term debt		110,000				30,000
Common stock ($10 par)		340,000				50,000
Additional paid-in capital						10,000
Retained earnings		785,000				230,000
Total liabilities and shareholders' equity	$	1,395,000			$	415,000

Additional Information:

• On December 31, 2017, Patrick acquired 100 percent of Sean’s voting stock in exchange for $460,000.
• 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 $25,000 more than their carrying amounts.

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

Multiple Choice

$1,375,000

$1,395,000

$1,520,000

$1,980,000

Price: 10 USD

Question Code: 20009