000 On July 1, 2018, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $785,225 in cash and equity securities. The remaining 30 percent of Atlanta's shares traded closely near an average price that totaled $336,525 both before and after Truman's acquisition. under valis In reviewing its acquisition, Truman assigned a $128,500 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 2018. In addition, the subsidiary's income was earned uniformly throughout the year. The subsidiary declared dividends quarterly. Problem Revenues Operating expenses Income of subsidiary Net income Retained earnings, 1/1/18 Net income (above) Dividends declared Retained earnings, 12/31/18 Current assets Investment in Atlanta Land Buildings Total assets Liabilities Truman Atlanta $ (726,645) $ (571,000) 473,000 370,000 (61,355) 0 $ (315,000) $ (201,000) $ (875,000) $ (530.000) (315,000) 160,000 2 (201,000) 90,000-) $(1,030,000) $ (641,000) $ 396,920 $ 404,000 815,080 0 457,000 763,000 232,000 649,000 $ 2,432,000 $1,285,000 Common stock Additional paid-in capital Retained earnings, 12/31/18 $ (902,000) $ (324,000) (95,000) (300,000) (405,000) (1,030,000) (20,000) (641,000) A Total liabilities and stockholders' equity$(2,432,000) $(1,285,000) T 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? How did Truman derive the Investment in Atlanta account balance at the end of 2018? 4-53 4-52