Allen Company acquired $100$ percent of Bradford Company$$s voting stock on January $1,2020,$ by issuing $10,000$ shares of its $$10$ par value common stock $($having a fair value of $$14\mathrm{.}50$ per share$).$ As of that date, Bradford had stockholders$$ equity totaling $$104,800.$ Land shown on Bradford$$s accounting records was undervalued by $$12,300.$ Equipment $($with a five$-$year remaining life$)$ was undervalued by $$7,300.$ A secret formula developed by Bradford was appraised at $$20,600$ with an estimated life of $20$ years.

The following are the separate financial statements for the two companies for the year ending December $31,2024.$ There were no intra$-$entity payables on that date. Credit balances are indicated by parentheses.

Accounts Allen Company Bradford Company

Revenues $ $(740,000)$ $ $(227,500)$

Cost of goods sold $245,00085,000$

Depreciation expense $156,75057,000$

Equity in subsidiary earnings $(83,010)0$

Net income $ $(421,260)$ $ $(85,500)$

Retained earnings, $1/1/24$ $ $(726,000)$ $ $(117,600)$

Net income $($above$)(421,260)(85,500)$

Dividends declared $175,50040,000$

Retained earnings $,12/31/24$ $ $(971,760)$ $ $(163,100)$

Current assets $ $340,000$ $ $84,000$

Investment in Bradford Company $255,8500$

Land $492,00065,700$

Buildings and equipment $($net$)808,000174,000$

Total assets $ $1,895,850$ $ $323,700$

Current liabilities $ $(234,090)$ $ $(95,600)$

Common stock $(600,000)(60,000)$

Additional paid$-$in capital $(90,000)(5,000)$

Retained earnings, $12/31/24(971,760)(163,100)$

Total liabilities and equity $ $(1,895,850)$ $ $(323,700)$

Required:

a$-1.$ Complete the table to show the allocation of the fair value in excess of book value.

a$-2.$ Complete the table to show the computation for Subsidiary Earnings.

b$.$ Complete the worksheet by consolidating the financial information for these two companies.

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