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 $16.00 per share). As of that date, Bradford had stockholders equity totaling $109,800. Land shown on Bradfords accounting records was undervalued by $19,700. Equipment (with a five-year remaining life) was undervalued by $7,300. A secret formula developed by Bradford was appraised at $23,200 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	$	(647,000	)		$	(268,750	)
Cost of goods sold		214,000				101,500
Depreciation expense		150,750				73,200
Subsidiary earnings		(91,430	)			0
Net income	$	(373,680	)		$	(94,050	)
Retained earnings, 1/1/21	$	(746,000	)		$	(110,400	)
Net income (above)		(373,680	)			(94,050	)
Dividends declared		175,500				40,000
Retained earnings ,12/31/21	$	(944,180	)		$	(164,450	)
Current assets	$	344,000			$	106,000
Investment in Bradford		266,550				0
Company
Land		586,000				65,700
Buildings and equipment (net)		882,000				207,000
Total assets	$	2,078,550			$	378,700
Current liabilities	$	(444,370	)		$	(149,250	)
Common stock		(600,000	)			(60,000	)
Additional paid-in capital		(90,000	)			(5,000	)
Retained earnings, 12/31/21		(944,180	)			(164,450	)
Total liabilities and equity	$	(2,078,550	)		$	(378,700	)

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.