4-43 (Algo) (LO 4-2, 4-3, 4-6, 4-7, 4-8) On July 1, 2021, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $791,875 in cash and equity securities. The remaining 30 percent of Atlanta's shares traded closely near an average price that totaled $339,375 both before and after Truman's acquisition. In reviewing its acquisition, Truman assigned a $124,500 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 Liabilities. Common stock Additional paid-in capital Retained earnings, 12/31/211 Total liabilities and stockholders' equity $ Truman (780,165) $ Atlanta (491,000) 468,000 298,000 (58,835) a $ (371,000) $ (193,000) $ (871,000) $ (534,000) (371,000) (193,000) 150,000 50,000 $ (1,092,000) $ (677,000) $ 465,790 $ 448,000 833,210 e 458,000 748,000 237,000 674,000 $ 2,505,000 $ 1,359,000 $ (913,000) (95,000) (405,000) (1,092,000) $ (2,505,000) (20,000) (677,000) $ (1,359,000) $ (362,000) (300,000) How did Truman allocate the goodwill from the acquisition across thontrolling and noncontrolling interests? Controlling Interest Noncontrolling Interest Goodwill $ 124,500 S 124,500 < Required A Required C > 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 S 124,500 x 124,500 Dividends 2021 124,500 Investment account balance 12/31/21 S 124,500 Required B Required D >