4 Allison Corporation acquired all of the outstanding voting stock of Mathias, Inc., on January 1, 2020, in exchange for $5.916,000 in cash. Allison intends to maintain Mathias as a wholly owned subsidiary. Both companies have December 31 fiscal year-ends. At the acquisition date, Mathias's stockholders' equity was $2,010,000 including retained earnings of $1,510,000 At the acquisition date, Allson prepared the following folr-value allocation schedule for its newly acquired subsidiary: 20 points $5,916,000 2.010.000 $3,906,000 eBook Consideration transferred Mathias stockholders' equity Excess fair over book value to unpatented technology (8-year remaining life) to patenta (10-year remaining life) to increase long-ter debt (undervalued, 5-year remaining life) Goodwin $ 516,900 2,520, th (110,000) Print 2.226,000 $ 680,000 References Postacquisition, Allison employs the equity method to account for its investment in Mathias. During business combination, Mathias reports the following income and dividends: two years following the 2020 2021 Income $ 476,250 952,500 Dividends $ 25,000 50,000 No asset impairments have occurred since the acquisition date. Individual financial statements for each company as of December 31, 2021, follow. Parentheses indicate credit balances. Dividends declared were paid in the same period. Allison Mathias Income Statement Sales Cost of goods sold Depreciation expense Amortization expense Interest expense Equity earnings in Mathias Net Income $6,440,000) 4,528,000 885,000 435,000 59,000 (620,500) $ (1,153,500) $(3,910,000) 2.506,500 283,000 106,000 62.000 0 $ (952,500) . 6 Next > Individual financial statements for each company as of December 31, 2021, follow. Parentheses indicate credit balances. Dividends declared were paid in the same period. Allison Mathias $ (6,440,000) 4,528,000 885,000 435,000 59,000 (620,500) $ (1,153,500) $(3,910,000) 2,506,500 283,000 106,000 62,000 0 $ (952,500) $ (5,360,000) (1,153,500) 560,000 $ (5,953,500) $(1,961,250) (952,500) 50,000 $12,863, 750) Income Statement Sales Cost of goods sold Depreciation expense Amortization expense Interest expense Equity earnings in Mathias Net income Statement of Retained Earnings Retained earnings 1/1 Net income (above) Dividends declared Retained earnings 12/31 Balance Sheet Cash Accounts receivable Inventory Investment in Mathias Equipment (net) Patents Unpatented technology Goodwill Total assets Accounts payable Long-term debt Common stock Retained earnings 12/31 Total liabilities and equity 78,000 960,000 1,720,000 6,605,750 3,720,000 100,000 2,135,000 432,000 $ 15,750,750 $ (597,250) (1,000,000) (8,200,000) (5,953,500) $(15,750, 750) $ 146,000 230,000 I 795,000 0 2,059,000 0 1,460,000 0 $ 4,690,000 $ (126,250) (1,200,000) (500,000) (2,863,750) $(4,690,000) Required: a. Determine the annual excess fair over book value amortization. b. Prepare a worksheet to determine the consolidated values to be reported on Allison's financial statements. Common stock Betained onrnings 12/31 Total liabilities and equity 1,000,000 (8,200,000) (3,953,500) $(15.750,750) 41.200,000) 4500,000 (2.063/7501 ${4.690,000) ook Required: Print a. Determine the annual excess fair over book value amortization b. Prepare a worksheet to determine the consolidated values to be reported on Alison's financial statements. o References Complete this question by entering your answers in the tabs below. Required A Required Determine the annual excess fair over book value amortization, Arun for over took a motion PA Required) MG GEW Hill 4 Required A Required B 20 points Prepare a worksheet to determine the consolidated values to be reported on Alison's financial statements. (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.) Show less BOOK Print Consolidated Totals References ALLISON CORPORATION AND CONSOLIDATED SUBSIDIARY Consolidation Worksheet For Year Ending December 31, 2021 Consolidation Entries Accounts Allison Mathias Debit Credit Income Statement Revenues $ (6.440,000) $ (3.910.000) Cost of goods sold 4.526,000 2.506,500 Depreciation expense 885,000 283.000 Amortization expense 435.000 106,000 Interest expense 59.000 62.000 Equity oamings in Mathias (620.500) Net income $ (1,153,500) $ (952,500) Statement of Retained Earnings Retained earnings 1/1 Net Income (above) Dividends declared Retained earnings 12/31 (5.380,000) (1.961.250) (1.153.500) (962.500) 560.000 50,000 $ (5.953.500) $ 2.863.780) Balance Sheet Cash $ 78.000 $ 145,0001 Mc 4 Depreciation expense Amortization expense Interest expense Equity earings in Mathias Net Income 885,000 435,000 59,000 (620,500) $ (1.153,500) $ 283,000 106,000 62,000 20 points (952,500) eBook Statement of Retained Earnings Retained earnings 1/1 Net income (above) Dividends declared Retained earnings 12/31 (5,360,000) (1.961,250) (1.153,500) (952,500) 560,000 50,000 $ (5,953,500) S (2,863,750) Print References Balance Sheet Cash Accounts receivable Inventories Investment in Mathias Equipment (net) Patents Unpatented technology Goodwill Total assets $ 78,000 $ 146,000 960,000 230,000 1.720,000 795,000 6,605,750 3,720,000 2,059,000 100,000 2,135,000 1,460,000 432,000 $ 15,750,750 $4,690,000 Accounts payable Long-term debt Common stock Retained earnings 12/31 Total liabilities and equity (597,250) (126,250) (1,000,000) (1,200,000) (8,200,000) (500,000) (5,953,500) (2,863,750) $(15,750,750) $ (4,690,000) $ 17,143,000 Powda Mc GE