Allen Company acquired 100 percent of Bradford Companys voting stock on January 1, 2017, by issuing 10,000 shares of its $10 par value common stock (having a fair value of $19.50 per share). As of that date, Bradford had stockholders equity totaling $145,450. Land shown on Bradfords accounting records was undervalued by $10,700. Equipment (with a five-year remaining life) was undervalued by $6,850. A secret formula developed by Bradford was appraised at $32,000 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.

	Allen Company				Bradford Company
Revenues	$	(653,000	)		$	(212,500	)
Cost of goods sold		216,000				79,000
Depreciation expense		135,000				60,900
Subsidiary earnings		(69,630	)			0
Net income	$	(371,630	)		$	(72,600	)
Retained earnings, 1/1/21	$	(792,000	)		$	(105,000	)
Net income (above)		(371,630	)			(72,600	)
Dividends declared		175,500				40,000
Retained earnings ,12/31/21	$	(988,130	)		$	(137,600	)
Current assets	$	454,000			$	99,000
Investment in Bradford		237,300				0
Company
Land		430,000				66,600
Buildings and equipment (net)		814,000				182,000
Total assets	$	1,935,300			$	347,600
Current liabilities	$	(257,170	)		$	(145,000	)
Common stock		(600,000	)			(60,000	)
Additional paid-in capital		(90,000	)			(5,000	)
Retained earnings, 12/31/21		(988,130	)			(137,600	)
Total liabilities and equity	$	(1,935,300	)		$	(347,600	)

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

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

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