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 $ 76,000 $ 78,000
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) 340,000 64,000
Additional paid-in capital 14,000
Retained earnings 796,000 216,000
Total liabilities and
shareholders' equity $ 1,414,000 $ 424,000
Additional Information:
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.
1. In the December 31, 2017, consolidated balance sheet of Patrick and its subsidiary, what amount of total assets should be reported?
2. In the December 31, 2017, consolidated balance sheet of Patrick and its subsidiary, what amount of total stockholders’ equity should be reported?