both before and after Truman's acquisition. In reviewing its acquisition, Truman assigned a $112,500 fair value...

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both before and after Truman's acquisition. In reviewing its acquisition, Truman assigned a $112,500 fair value to a patent recently developed by Atlanta, even though it was not recorded within the financial records of the subsidiary. This patent is anticipated to have a remaining life of five years. The following financial information is available for these two companies for 2021. In addition, the subsidiary's income was earned uniformly throughout the year. The subsidiary declared dividends quarterly. Revenues Operating expenses Income of subsidiary Net income Retained earnings, 1/1/21 Net income (above) Dividends declared Retained earnings, 12/31/21 Current assets Investment in Atlanta Land Buildings Total assets Truman (742,975) 476,000 Atlanta $ (468,000) 314,000 (46,025) 0 $ (313,000) $ (154,000) $ (906,000) $ (510,000) (313,000) (154,000) 160,000 80,000 $ (1,059,000) $ (584,000) $ 504,975 $ 404,000 767,025 0 465,000 241,000 720,000 646,000 $ 2,457,000 $ 1,291,000 $ (898,000) $ (387,000) Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/21 Total liabilities and stockholders' equity $ (2,457,000) (95,000) (405,000) (1,059,000) (300,000) (20,000) (584,000) $ (1,291,000) a. What is the excess fair-value assigned to patent and goodwill? b. How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests? c. How did Truman derive the Investment in Atlanta account balance at the end of 2021? d. Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2021. At year-end, there were no intra-entity receivables or payables. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests? Controlling Interest Noncontrolling Interest Goodwill $ 49,875 $ 21,375 < Required A Required C > Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D How did Truman derive the Investment in Atlanta account balance at the end of 2021? Initial value at acquisition date Equity in earnings of Atlanta Dividends 2021 Investment account balance 12/31/21 $ 749,000 $ 749,000 < Required B Required D > Required A Required B Required C Required D Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2021. At year-end, there were no intra-entity receivables or payables. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Input all amounts as positive values.) TRUMAN COMPANY AND ATLANTA COMPANY Consolidation Worksheet For Year Ending December 31, 2021 Truman Company Atlanta Company Consolidation Entries Debit Credit Noncontrolling Interest Consolidated Totals $ (742,975) $ (468,000) 476,000 314,000 (46,025) 0 $ (313,000) $ (154,000) Revenues Operating expenses Net income of subsidiary Separate company net income Consolidated net income Net income attributable to NCI Net income attributable to Truman Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Current assets Investment in Atlanta Land Buildings Patent $ (906,000) (313,000) 160,000 $(1,059,000) $ (510,000) (154,000) 80,000 $ (584,000) $ 504,975 $ 404,000 767,025 465,000 0 720,000 241,000 646,000 Goodwill Total assets Liabilities Common stock Additional paid in capital Retained earnings, 12/31/21 Noncontrolling interest 7/1 Noncontrolling interest 12/31 $ 2,457,000 $ 1,291,000 $ (898,000) $ (387,000) (300,000) (95,000) (405,000) (20,000) (1,059,000) (584,000) Total liabilities and stockholders' equity $(2,457,000) $(1,291,000) 0 $ 0 < Required C Required D Show less both before and after Truman's acquisition. In reviewing its acquisition, Truman assigned a $112,500 fair value to a patent recently developed by Atlanta, even though it was not recorded within the financial records of the subsidiary. This patent is anticipated to have a remaining life of five years. The following financial information is available for these two companies for 2021. In addition, the subsidiary's income was earned uniformly throughout the year. The subsidiary declared dividends quarterly. Revenues Operating expenses Income of subsidiary Net income Retained earnings, 1/1/21 Net income (above) Dividends declared Retained earnings, 12/31/21 Current assets Investment in Atlanta Land Buildings Total assets Truman (742,975) 476,000 Atlanta $ (468,000) 314,000 (46,025) 0 $ (313,000) $ (154,000) $ (906,000) $ (510,000) (313,000) (154,000) 160,000 80,000 $ (1,059,000) $ (584,000) $ 504,975 $ 404,000 767,025 0 465,000 241,000 720,000 646,000 $ 2,457,000 $ 1,291,000 $ (898,000) $ (387,000) Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/21 Total liabilities and stockholders' equity $ (2,457,000) (95,000) (405,000) (1,059,000) (300,000) (20,000) (584,000) $ (1,291,000) a. What is the excess fair-value assigned to patent and goodwill? b. How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests? c. How did Truman derive the Investment in Atlanta account balance at the end of 2021? d. Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2021. At year-end, there were no intra-entity receivables or payables. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests? Controlling Interest Noncontrolling Interest Goodwill $ 49,875 $ 21,375 < Required A Required C > Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D How did Truman derive the Investment in Atlanta account balance at the end of 2021? Initial value at acquisition date Equity in earnings of Atlanta Dividends 2021 Investment account balance 12/31/21 $ 749,000 $ 749,000 < Required B Required D > Required A Required B Required C Required D Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2021. At year-end, there were no intra-entity receivables or payables. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Input all amounts as positive values.) TRUMAN COMPANY AND ATLANTA COMPANY Consolidation Worksheet For Year Ending December 31, 2021 Truman Company Atlanta Company Consolidation Entries Debit Credit Noncontrolling Interest Consolidated Totals $ (742,975) $ (468,000) 476,000 314,000 (46,025) 0 $ (313,000) $ (154,000) Revenues Operating expenses Net income of subsidiary Separate company net income Consolidated net income Net income attributable to NCI Net income attributable to Truman Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Current assets Investment in Atlanta Land Buildings Patent $ (906,000) (313,000) 160,000 $(1,059,000) $ (510,000) (154,000) 80,000 $ (584,000) $ 504,975 $ 404,000 767,025 465,000 0 720,000 241,000 646,000 Goodwill Total assets Liabilities Common stock Additional paid in capital Retained earnings, 12/31/21 Noncontrolling interest 7/1 Noncontrolling interest 12/31 $ 2,457,000 $ 1,291,000 $ (898,000) $ (387,000) (300,000) (95,000) (405,000) (20,000) (1,059,000) (584,000) Total liabilities and stockholders' equity $(2,457,000) $(1,291,000) 0 $ 0 < Required C Required D Show less