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 $17.50 per share). As of that date, Bradford had stockholders' equity totaling $112,150. Land shown on Bradford's accounting records was undervalued by $19,700. Equipment (with a five-year remaining life) was undervalued by $6,750. A secret formula developed by Bradford was appraised at $36,400 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. Revenues Cost of goods sold Depreciation expense Subsidiary earnings Net income Retained earnings, 1/1/21 Net income (above) Dividends declared 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 $ (521,000) 172,000 189,000 (131,080) $ (291,080) $ (762,000) (291,080) 175,500 Bradford Company $ (303,750) 115,500 54,000 $ (134,250) $ (103,500) (134,250) 40,000 $ (197,750) Retained earnings, 12/31/21 $ (877,580) $ 374,000 309,750 $ 101,500 574,000 854,000 86,100 186,000 $ 2,111,750 $ 373,600 $ (544,170) $ (110,850) (600,000) (90,000) (877,580) $(2,111,750) (60,000) (5,000) (197,750) $ (373,600) Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B Complete the worksheet by consolidating the financial information for these two companies. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Amounts in the Debit and Credit columns should be entered as positive. Input all amounts as positive values.) Show less A ALLEN AND SUBSIDIARY Consolidation Worksheet For Year Ending December 31, 2021 Accounts Allen Co. Bradford Co. Debit Consolidation Entries Credit Consolidated Totals Income Statement Revenues Cost of goods sold Depreciation expense Amortization expense Equity in subsidiary earnings Net income Statement of Retained Earnings S (521,000) $ (303,750) 172,000 189,000 115,500 54,000 0 0 (131,080) 0 S (291,080) $ (134,250) Retained earnings 1/1 (762,000) (103,500) Net income (above) (291,080) (134,250) Dividends declared 175,500 40,000 Retained earnings 12/31 S (877,580) $ (197,750) Balance Sheet Current assets S 374,000 $ 101,500 Investment in Bradford Co. 309,750 0 Land 574,000 86,100 Buildings and equipment (net) 854,000 186,000 Formula Total assets 0 0 $ 2,111,750 $ 373,600 Current liabilities (544,170) (110,850) Common stock (600,000) (60,000) Additional paid-in capital Retained earnings 12/31 (90,000) (5,000) (877,580) (197,750) Total liabilities and equity S (2,111,750) $ (373,600) $ 0 S < Req A2 Req B >