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 $23.50 per share). As of that date, Bradford had stockholders equity totaling $182,100. Land shown on Bradfords accounting records was undervalued by $12,000. Equipment (with a five-year remaining life) was undervalued by $5,700. A secret formula developed by Bradford was appraised at $35,200 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	$	(560,000	)		$	(205,000	)
Cost of goods sold		185,000				76,000
Depreciation expense		192,750				78,600
Subsidiary earnings		(47,500	)			0
Net income	$	(229,750	)		$	(50,400	)
Retained earnings, 1/1/21	$	(834,000	)		$	(108,000	)
Net income (above)		(229,750	)			(50,400	)
Dividends declared		175,500				40,000
Retained earnings ,12/31/21	$	(888,250	)		$	(118,400	)
Current assets	$	306,000			$	92,000
Investment in Bradford		221,800				0
Company
Land		456,000				72,900
Buildings and equipment (net)		846,000				190,000
Total assets	$	1,829,800			$	354,900
Current liabilities	$	(251,550	)		$	(171,500	)
Common stock		(600,000	)			(60,000	)
Additional paid-in capital		(90,000	)			(5,000	)
Retained earnings, 12/31/21		(888,250	)			(118,400	)
Total liabilities and equity	$	(1,829,800	)		$	(354,900	)

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.

Req A1

Req A2

Req B

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

Accounts	Amount	Life		Annual Excess Amortizations
			years
			years
			years
			years
			years
Total	$0			$0