11 On July 1, 2021, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $749,000 in cash and equity securities. The remaining 30 percent of Atlanta's shares traded closely near an average price that totaled $321,000 both before and after Truman's acquisition. In reviewing its acquisition, Truman assigned a $112.500 foir value to a patent recently developed by Atlanta, even though it was not recorded within the financial records of the subsidiary. This patent is antelated 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, 00:29:56 Revenges Operating expenses Income of subsidiary Net Income Retnined earnings, 1/1/21 Net Income (above) Dividende declared Totained earnings, 12/31/21 Current assets Investment in Atlanta Land Buildings Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/21 Puma Atlanta 5 (742,975) 5 (468,000) 476,000 314,000 (46,025) 0 $ (313,000) $ (154,000) (906,000) (510,000) (313,000) 1154,000) 160,000 80,000 $(1,059,000) $(584,000) $ 504,975 $ 404,000 767,025 O 465,000 241.000 920,000 646,000 0 2,457,000 $ 1,291,000 $(98,000) $ (387,000) (95,000) (300,000) (405,000) (20,000) (1.050,000) (586,000 ${2,457,000) $41.291,000) Total abilities and stockholdoen' equity a. What is the excess falr-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. SOVU Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/21 Total liabilities and stockholders' equity 4,457,00 $ (898,000) (95,000) (405,000) (1,059,000) $12,457,000) > 1,291, UUU $ (387,000) (300,000) (20,000) (584,000) $(1,291,000) 13 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 20217 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. Complete this question by entering your answers in the tabs below. Required A Required B Required Required D What is the excess fair-value assigned to patent and goodwill? Patent Goodwill Required B Total assets Liabilities Common stock Additional pald-in capital Retained earnings, 12/31/21 Total liabilities and stockholders' equity $ 2,457,000 $ 1898,000) (95,000) (405,000) (1,059,000) $12,457,000) $ 1,291,000 S (387,000) (300,000) (20,000) (584,000) $(1,291,000) 39:29 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 Complete this question by entering your answers in the tabs below. Required A Required B Required Required D How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests? Controlling Noncontrolling Interest Interest Goodwill Noncontrolling Consolidated Interest Totals consolgun worksnet For Year Ending December 31, 2021 Truman Atlanta Consolidation Entries Company Company Debit Credit $ (742,975) $ (468,000) 476,000 314,000 (46,025) 0 $ (313,000) $ (154,000) Revenues Operating expenses Not income of subsidiary Separate company not income Consolidated net income Net income attributable to NCI Net Income attributable to Truman Retained earnings, 1/1/21 Net Income Dividends declared Retained earings, 12/31/21 S (906,000) (313,000) 160.000 S (1.050,000) (510,000) (154,000) 80.000 (584,000) $ 404,000 0 504,9755 767,025 465,000 720.000 241,000 646.000 $ Current assets Investment in Atlanta Land Buildings Patent Goodwill Total assets Llabilities Common stock Additional paid in capital Retained earnings, 12/31/21 Noncontrolling interest 771 Noncontrolling interest 12/31 Total liabilities and stockholders' equity $ 2.457.000 $1,291,000 (898,000) $ (387,000) (95.000) (300,000) (405.000) (20,000) (1.059.000) (584,000) 5 (2.457.000) $ (1,291.000)