Allen Company acquired 100 percent of Bradford Company's voting stock on January 1, 2017, by issuing 10,000 shares of its $10 par value common stock (having a fair value of $24.50 per share). As of that date, Bradford had stockholders' equity totaling $195,500. Land shown on Bradford's accounting records was undervalued by $11,000. Equipment (with a five-year remaining life) was undervalued by $7,500. A secret formula developed by Bradford was appraised at $31,000 with an estimated life of 20 years. The following are the separate financial statements for the two companies for the year ending December 31, 2021. There were no intra-entity payables on that date. Credit balances are indicated by parentheses. Bradford Company $ (263,750) 99,500 73,500 Revenues Cost of goods sold Depreciation expense Subsidiary earnings Net income Retained earnings, 1/1/21 Net income (above) Dividends declared Retained earnings ,12/31/21 Current assets Investment in Bradford Company Land Buildings and equipment (net) Total assets Current liabilities Common stock Additional paid-in capital Retained earnings, 12/31/21 Total liabilities and equity Allen Company $ (605, 000) 200,000 153,750 (87,700 $ (338,950) $ (796,000 (338,950) 175,500 $ (959,450) $ 390,000 259,200 $ (90,750) $ (109,200) (90,750) 40,000 $ (159,950) $ 78,000 0 462,000 850,000 $ 1,961,200 $ (311,750) (600,000) (90,000) (959,450) $(1,961,200) 69,300 211,000 $ 358,300 $ (133,350) (60,000) (5,000) (159,950) $ (358,300) 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. Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Reg B Complete the table to show the allocation of the fair value in excess of book value. Amount Life Annual Excess Amortizations $ Accounts Land Equipment Formula 11,000 7,500 31,000 $ years 5 years 20 years years years 1,500 1,550 Total 49,500 $ 3,050 Reg A1 Reg A2 Reg B Complete the table to show the computation for Subsidiary Earnings. (Negative amounts should be indicated by a minus sign.) Amounts Equity accrual Amortization expense Equity earnings EA 0 ALLEN AND SUBSIDIARY Consolidation Worksheet For Year Ending December 31, 2021 Consolidation Entries Allen Co. Bradford Co. Debit Credit Consolidated Totals Accounts Income Statement Revenues Cost of goods sold Depreciation expense Amortization expense Equity in subsidiary earnings Net income $ (605,000) $ (263,750) 200,000 99,500 153,750 73,500 0 0 (87,700) 0 $ (338,950) $ (90,750) Statement of Retained Earnings Retained earnings 1/1 Net income (above) Dividends declared Retained earnings 12/31 (796,000) (338,950) 175,500 (959,450) $ (109,200) (90,750) 40,000 (159,950) $ 78,000 0 Balance Sheet Current assets Investment in Bradford Co. Land Buildings and equipment (net) Formula Total assets $ 390,000 $ 259,200 462,000 850,000 0 $ 1,961,200 $ 69,300 211,000 0 358,300 Current liabilities Common stock Additional paid-in capital Retained earnings 12/31 Total liabilities and equity (311,750) (600,000) (90,000) (959,450) $ (1,961,200) $ (133,350) (60,000) (5,000) (159,950) (358,300) $ 0 $ 0