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 $$20\mathrm{.}00$ per share$).$ As of that date, Bradford had stockholders$$ equity totaling $$148,550.$ Land shown on Bradford$$s accounting records was undervalued by $$15,000.$ Equipment $($with a five$-$year remaining life$)$ was undervalued by $$9,450.$ A secret formula developed by Bradford was appraised at $$27,000$ 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 $ $(650,000)$ $ $(270,000)$

Cost of goods sold $215,000102,000$

Depreciation expense $189,00077,400$

Equity in subsidiary earnings $(87,360)0$

Net income $ $(333,360)$ $ $(90,600)$

Retained earnings, $1/1/24$ $ $(788,000)$ $ $(125,400)$

Net income $($above$)(333,360)(90,600)$

Dividends declared $175,50040,000$

Retained earnings $,12/31/24$ $ $(945,860)$ $ $(176,000)$

Current assets $ $306,000$ $ $115,500$

Investment in Bradford Company $276,2500$

Land $468,00068,700$

Buildings and equipment $($net$)856,000225,000$

Total assets $ $1,906,250$ $ $409,200$

Current liabilities $ $(270,390)$ $ $(168,200)$

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

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

Retained earnings, $12/31/24(945,860)(176,000)$

Total liabilities and equity $ $(1,906,250)$ $ $(409,200)$

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.