$On$ July $1,2024,$ Truman Company acquired $a70$ percent interest $in$ Atlanta Company $in$ exchange for consideration $of$ $$822,550in$ How did Truman allocate Atlanta's acquisition$-$date fair value to the various assets acquired and liabilities assumed in the

combination? How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests? Required A

Required B

Required C

Required D

How did Truman derive the Investment in Atlanta account balance at the end of $2024?$

Initial value at acquisition date

Equity in earnings of Atlanta

Dividends $2024$

Investment account balance $12/31/24$Prepare a worksheet to consolidate the financial statements of these two companies as of December $31,2024.$ At year$-$end, there were no intra$-$entity receivables

or payables.

Note: 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 $31,2024$

cash and equity $securities.$ The remaining $30$ percent $of$ Atlanta's shares traded closely near $an$ average price that totaled $$333,950$

both before and after Truman's acquisition.

$In$ reviewing its acquisition, Truman assigned $a$ $$126,000$ 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 $2024.In$ addition, the subsidiary's income was earned

uniformly throughout the year. The subsidiary declared dividends quarterly.

Required:

$a.$ How did Truman allocate Atlanta's acquisition$-$date fair value $to$ the various assets acquired and liabilities assumed $in$ the

combination?

$b.$ 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 $of2024?$

$d.$ Prepare a worksheet $to$ consolidate the financial statements $of$ these two companies $asof$ December $31,2024.At$ year$-$end, there

were $no$ intra$-$entity receivables $or$ payables.