Question
In: Accounting
The separate condensed balance sheets of Patrick Corporation and its wholly owned subsidiary, Sean Corporation, are...
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 | $ | 56,000 | |||||||
| Accounts receivable (net) | 144,000 | 30,000 | |||||||||
| Inventories | 100,000 | 42,000 | |||||||||
| Plant and equipment (net) | 628,000 | 260,000 | |||||||||
| Investment in Sean | 440,000 | - | |||||||||
| Total assets | $ | 1,382,000 | $ | 388,000 | |||||||
| Accounts payable | 170,000 | 98,000 | |||||||||
| Long-term debt | 102,000 | 22,000 | |||||||||
| Common stock ($10 par) | 340,000 | 62,000 | |||||||||
| Additional paid-in capital | 14,000 | ||||||||||
| Retained earnings | 770,000 | 192,000 | |||||||||
| Total liabilities and shareholders' equity | $ | 1,382,000 | $ | 388,000 | |||||||
Additional Information:
- On December 31, 2017, Patrick acquired 100 percent of Sean’s voting stock in exchange for $440,000.
- 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 $24,000 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?
Multiple Choice
-
$1,362,000
-
$1,382,000
-
$1,502,000
-
$1,942,000
Solutions
ekkarill92 answered 2 years agoRelated Solutions
The separate condensed balance sheets of Patrick Corporation and its wholly-owned subsidiary, Sean Corporation, are as...
The separate condensed balance sheets of Patrick Corporation and
its wholly-owned subsidiary, Sean Corporation, are as follows:
BALANCE SHEETS December 31, 2020 Patrick Sean Cash $ 76,000 $
74,000 Accounts receivable (net) 144,000 22,000 Inventories 84,000
74,000 Plant and equipment (net) 622,000 266,000 Investment in Sean
456,000 - Total assets $ 1,382,000 $ 436,000 Accounts payable
160,000 88,000 Long-term debt 100,000 34,000 Common stock ($10 par)
326,000 50,000 Additional paid-in capital 14,000 Retained earnings
796,000 250,000 Total liabilities and shareholders'...
The separate condensed balance sheets of Patrick Corporation and its wholly owned subsidiary, Sean Corporation, are...
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
$
56,000
Accounts receivable (net)
140,000
40,000
Inventories
88,000
50,000
Plant and equipment (net)
624,000
260,000
Investment in Sean
474,000
-
Total assets
$
1,406,000
$
406,000
Accounts payable
178,000
98,000
Long-term debt
100,000
34,000
Common stock ($10 par)
338,000
80,000
Additional paid-in capital
8,000
Retained earnings
790,000
186,000
Total liabilities and...
The separate condensed balance sheets and income statements of Purl Corp. and its wholly owned subsidiary,...
The separate condensed balance sheets and income statements of
Purl Corp. and its wholly owned subsidiary, Scott Corp., are as
follows:
BALANCE SHEETS
December 31, 20X0
Purl
Scott
Assets
Current assets
Cash
$80,000
$60,000
Accounts receivable (net)
$140,000
$25,000
Inventories
$90,000
$50,000
Total current assets
$310,000
$135,000
Property plant, and equipment (net)
$625,000
$280,000
Investment in Scott (equity method)
$390,000
----
Total assets
$1,325,000
$415,000...
Portsmouth Corporation, a British corporation, is a wholly owned subsidiary of Salem Corporation, a U.S. corporation....
Portsmouth Corporation, a British corporation, is a wholly owned
subsidiary of Salem Corporation, a U.S. corporation. During the
year, Portsmouth reported the following income:
$250,000 interest income received from a loan to an unrelated
French corporation.
$100,000 dividend income received from a less than 1 percent owned
unrelated Dutch corporation.
$150,000 rent income from an unrelated British corporation on
property Portsmouth actively manages.
$500,000 gross profit from the sale of inventory manufactured by
Portsmouth in Great Britain and sold to...
The December 31, 20X8, balance sheets for Pint Corporation and its 70 percent-owned subsidiary Saloon Company...
The December 31, 20X8, balance sheets for Pint Corporation and
its 70 percent-owned subsidiary Saloon Company contained the
following summarized amounts:
PINT CORPORATION AND SALOON COMPANY
Balance Sheets
December 31, 20X8
Pint
Corporation
Saloon
Company
Assets
Cash & Receivables
$
105,000
$
48,000
Inventory
156,000
105,000
Buildings & Equipment (net)
313,000
292,000
Investment in Saloon Company
217,000
Total Assets
$
791,000
$
445,000
Liabilities & Equity
Accounts Payable
$
92,000
$
79,000
Common Stock
184,000
131,000
Retained Earnings
515,000
235,000...
The December 31, 20X8, balance sheets for Pint Corporation and its 80 percent-owned subsidiary Saloon Company...
The December 31, 20X8, balance sheets for Pint Corporation and
its 80 percent-owned subsidiary Saloon Company contained the
following summarized amounts:
PINT CORPORATION AND SALOON COMPANY
Balance Sheets
December 31, 20X8
Pint
Corporation
Saloon
Company
Assets
Cash & Receivables
$
99,000
$
42,000
Inventory
156,000
103,000
Buildings & Equipment (net)
313,000
288,000
Investment in Saloon Company
263,200
Total Assets
$
831,200
$
433,000
Liabilities & Equity
Accounts Payable
$
131,200
$
50,000
Common Stock
188,000
137,000
Retained Earnings
512,000
246,000...
The December 31, 20X8, balance sheets for Pint Corporation and its 70 percent-owned subsidiary Saloon Company...
The December 31, 20X8, balance sheets for Pint Corporation and
its 70 percent-owned subsidiary Saloon Company contained the
following summarized amounts:
PINT CORPORATION AND SALOON COMPANY
Balance Sheets
December 31, 20X8
Pint
Corporation
Saloon
Company
Assets
Cash & Receivables
$
110,000
$
50,000
Inventory
151,000
114,000
Buildings & Equipment (net)
322,000
300,000
Investment in Saloon Company
232,500
Total Assets
$
815,500
$
464,000
Liabilities & Equity
Accounts Payable
$
103,500
$
73,000
Common Stock
190,000
141,000
Retained Earnings
522,000
250,000...
Presented below are selected amounts from the separate unconsolidated financial statements of Pero Corporation and its 90%-owned subsidiary Sean Company at December 31, 2016
Presented below are selected amounts from the separate
unconsolidated financial statements of Pero Corporation and its
90%-owned subsidiary Sean Company at December 31, 2016. Additional
information follows:Pero CorporationSean CompanySelected income statement amounts: Sales$ 710,000 $ 530,000 Cost of goods sold490,000 370,000 Gain on the sale of equipment21,000 Earnings from investment in subsidiary (equity)63,000 Other expenses48,000 75,000 Interest expense16,000 Depreciation25,000 20,000 Selected balance sheet amounts: Cash30,000 18,000 Inventories229,000 150,000 Equipment440,000 360,000 Accumulated depreciation(200,000) (120,000) Investment in Sean (equity balance)211,000 Investment in bonds(100,000) Discount on bonds(9,000) Bonds payable(200,000) Discount on bonds payable3,000 Common stock100,000) (10,000) Additional paid-in capital in excess of par(250,000) (40,000) Retained earnings(402,000) (140,000) Selected statement of retained earnings amounts: Beginning balance, December...
On April 1, 2020, Republic Company sold equipment to its wholly owned subsidiary, Barre Corporation, for...
On April 1, 2020, Republic Company sold equipment to its wholly
owned subsidiary, Barre Corporation, for $40,000. At the time of
the transfer, the asset had an original cost (to Republic) of
$60,000 and accumulated depreciation of $25,000. The equipment has
a five year estimated remaining life.
Barre reported net income of $250,000, $270,000 and $310,000 in
2020, 2021, and 2022, respectively. Republic received dividends
from Barre of $90,000, $105,000 and $120,000 for 2020, 2021, and
2022, respectively.
What was...
USAco, a domestic corporation, is a wholly-owned subsidiary of FORco, a foreign corporation. USAco's only assets...
USAco, a domestic corporation, is a wholly-owned subsidiary of
FORco, a foreign corporation. USAco's only assets are cash of
$200,000, accounts receivable of $200,000 and its U.S.
manufacturing plant worth $500,000. USAco has no liabilities.
Assume that there is no intangible value in USAco and that the
manufacturing plant is a USRPI. During the current year, FORco
sells all of its shares of USAco to an unrelated U.S.person. Is
FORco's sale of stock in USAco subject to withholding under FIRPTA?...
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