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 $70,000 $70,000
Accounts receivable (net) 146,000 38,000
Inventories 100,000 46,000
Plant and equipment (net) 622,000 262,000
Investment in Sean 470,000 -
Total assets $1,414,000 $424,000
Accounts payable 176,000 90,000
Long-term debt 102,000 40,000
Common stock ($10 par) 340, 64,000
Additional paid-in capital 14,000
Retained earnings 796,000 216,000
Total liabilities and shareholders' equity $1,414,000 $424,000

On December 31, 2017, Patrick acquired 100 percent of Sean’s voting stock in exchange for $470,000.

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 $22,000 more than their carrying amounts.

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

Patrick Corporation Group

a. The amount of total assets is:

=  $1,544,000.

b. The amount of total stockholders' equity that should be reported is:

= $1,136,000.

Explanation:

a) Data and Calculations:

BALANCE SHEETS December 31, 2017

                                              Patrick        Sean          Consolidated

Cash                                    $70,000     $70,000           $140,000

Accounts receivable (net)   146,000       38,000             184,000

Inventories                           100,000      46,000             168,000

Plant and equipment (net) 622,000    262,000            884,000

Investment in Sean             470,000           -                       -

Goodwill                                                                           168,000

Total assets                     $1,414,000 $424,000        $1,544,000

Accounts payable                176,000     90,000            266,000

Long-term debt                   102,000     40,000            142,000

Common stock ($10 par)   340,000      64,000           340,000

Additional paid-in capital                        14,000

Retained earnings            796,000     216,000          796,000

Total liabilities and

 shareholders' equity  $1,414,000  $424,000      $1,544,000

b) Total stockholders' equity after consolidation is calculated as:

Common stock ($10 par)   340,000

Retained earnings             796,000

Total equity =                 $1,136,000

answer; (a) conduct a worksite inspection;