Alles on Corporation acquired all of the outstanding voting stock of Mathias, Inc. on January 1, 2020, in exchange for $6,326,000 in cash Allison intends to maintain Mathias as a wholly owned subsidiary Both companies have December 31 fiscal year-ends. At the acquisition date. Mathias's stockholders' equity was $2,110,000 including retained earnings of $1,610,000 At the acquisition date, Allison prepared the following fair value allocation schedule for its newly acquired subsidiary: Consideration transferred Pathias stockholders equity Pxcess for over book value to unpatented technology (8-year renalning life) to patents (ie year resining life) to Increase long-tere debt (undervalued, 5-year remaining life Soodli $6,326,000 2, 110.000 $4.216,00 $ 976,00 2,720,000 210.000 3,486,000 5730,000 Portaccuisition Allison employs the equity method to account for its investment in Mathias. During the two years following the business combination Mathias reports the following income and dividends. 2020 2021 5.430,150 827.500 old $ 25,00 50.000 No assetimpaments have occurred since the acquisition date Indivdual financial statements for each company as of December 31, 2021, follow Parentheses indicate credit balances Dividends gecured were paid in the sonte period Allison Inco Statut Mathia Cast oods told Sust Wotton Apt Inter olyans in this 5 (6.640,90) 4,000,000 985.000 485.000 99.00 525 (980) 5(9,010,000 2,321,500 345,000 136,000 12.000 (877 Statement of retaines Neching 11 t now Lelated leted in / te sheet 5,560.eu (9, 0.021.750 (2250 50.000 EASA $5.900, 500) 1 $ 174, 100 1.4, 1.030, 1,563,20 AP.00 No asset impairments have occurred since the acquisition date. Individual financial statements for each company as of December 31, 2021, follow. Parentheses indicate credit balances Dividends declared were paid in the same period Allison Mathias $ (6,840,000) 4,808,080 985,000 485,000 99,000 (525,500) $ (988,500) $(4,210,000) 2,571, 500 343.000 136,000 82,000 $ (877,500) 5 (5,560,000) (988,500) 560,00 5 (5,988,500) $(2,823,750) (877,50e) Se,000 $(2,051,250) Income Statement Sales Cost of goods sold Depreciation expense Amortization expense Interest expense Equity earnings in Mathias Net Income Statement of Retained Earnings Retained earnings 1/1 Net Income (above) Dividends declared Retained earnings 12/31 Balance Sheet Cash Accounts receivable Inventory Investment in Mathias Equipeent (net) Patents Unpatented technology Lood11 Total assets accounts payable Long-tern debt Comon stock Retalhed earning 12/31 Total abilities and equity $ 176,000 280,000 895,000 2,129,000 1.560,000 5 188,000 1,660,000 1,920,00 6,863,250 3,929,000 150,000 2,235,000 502,000 $ 16,758, 250 $ (1.569,250) (1,000,000 (8,200,000 16.980.500 $(16,758, 250) $ 5,040,000 5 (488,750) (1,200,000) (500,000 (2,951, 250 5(5,040,000) Required: o. Determine the annual excess falr over book value amortization b. Prepare a worksheet to determine the consolidated values to be reported on Allison's financial statements Complete this question by entering your answers in the tabs below. Accounts payable Long term debt Common stock Retained earnings 12/31 Total liabilities and equity > 16/58,250 $ (1,569,750) (1,000,000) (8,200,000 (5.988.500) $(16,758,250) $ 5,840,000 $ (488,750) (1,200,000 (500,000) (2,851,250) $(5,840,000) Required: a. Determine the annual excess fair over book value amortization. b. Prepare a worksheet to determine the consolidated values to be reported on Allison's financial statements, Complete this question by entering your answers in the tabs below. Required A Required B Determine the annual excess fair over book value amortization, Annual excess falt over book value amortization Required B > Total assets Accounts payable Long-term debt Common stock Retained earnings 12/31 Total liabilities and equity $ 16,758, 250 $ (1,569, 750) (1,000,000) (8,200,000) (5,988,500) $(16,758, 250) $ 5,040, eee $(488,750 (1,200,000) (500,000) (2,851, 250) $(5,040,000) Required: a. Determine the annual excess fair over book value amortization. b. Prepare a worksheet to determine the consolidated values to be reported on Allison's financial statements. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a worksheet to determine the consolidated values to be reported on Allison's financial statements. (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. Input all amounts as positive values.) Show less ALLISON CORPORATION AND CONSOLIDATED SUBSIDIARY Consolidation Worksheet For Year Ending December 31, 2021 Consolidation Entries Accounts Allison Mathias Dobit Credit Consolidated Totals Income Statement Revenues Cost of goods sold $ (6.840,000) $ (4,010,000) 4.808.000 2571 500 ALLISON CORPORATION AND CONSOLIDATED SUBSIDIARY racondation Worksheet For Year Ending December 31, 2021 Consolidation Entries Accounts Allison Mathias Debit Credit Consolidated Totals Income Statement Revenues Cost of goods sold Depreciation expense Amortization expense Interest expense Equity earnings in Mathias Net Income $ (6,840,000) 4,808,000 985,000 485.000 99,000 (525,500 $ (988,500) $ (4.010.000) 2,571 500 343.000 136,000 82.000 $ (877.500) Statement of Retained Earnings Retained earnings 1/1 Net income (above) Dividends declared Retained earnings 12/31 (5,560,000) (988,500 560.000 $ (5 988.500 (2,023.750) (877 500) 50.000 $ (2 851 250) Balance Sheet Cash S S 176,000 Accounts receivable Inventories Investment in Mathias Equipment (ner 108,000 1.060,000 1.920,000 6,863 250 280,000 895.000 3020 82 000 interest expense Equity earnings in Mathias Net income 99,000 (525,500) (988,500) $ $ (877 500) Statement of Retained Earnings Retained earnings 1/1 Net income (above) Dividends declared Retained earnings 12/31 (5,560,000) (988,500) 560.000 $ 5,988,500) (2,023,750) (877 500) 50.000 $ (2 851 250) Balance Sheet Cash Accounts receivable Inventories Investment in Mathias Equipment (net) Patents Unpatented technology Goodwill Total assets $ 108,000 $ 176,000 1,060,000 280,000 1,920.000 895,000 6.863.250 3.920,000 2 129.000 150,000 2.235,000 1,560 000 502,000 $ 16.758,250 $ 5,040,000 Accounts payable Long-term debt Common stock Retained earnings 12/31 Total liabilities and equity (1,569.750) (1,000,000) (8,200,000) (5.988.500 $(16.758,250) (488.750) (1.200.000) (500.000 (2.851,250) S (5040,000) S 18,573,000 16/58,250 $ (1,569,750) (1,000,000) (8,200,000 (5.988.500) $(16,758,250) $ 5,840,000 $ (488,750) (1,200,000 (500,000) (2,851,250) $(5,840,000) Required: a. Determine the annual excess fair over book value amortization. b. Prepare a worksheet to determine the consolidated values to be reported on Allison's financial statements, Complete this question by entering your answers in the tabs below. Required A Required B Determine the annual excess fair over book value amortization, Annual excess falt over book value amortization Required B > Total assets Accounts payable Long-term debt Common stock Retained earnings 12/31 Total liabilities and equity $ 16,758, 250 $ (1,569, 750) (1,000,000) (8,200,000) (5,988,500) $(16,758, 250) $ 5,040, eee $(488,750 (1,200,000) (500,000) (2,851, 250) $(5,040,000) Required: a. Determine the annual excess fair over book value amortization. b. Prepare a worksheet to determine the consolidated values to be reported on Allison's financial statements. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a worksheet to determine the consolidated values to be reported on Allison's financial statements. (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. Input all amounts as positive values.) Show less ALLISON CORPORATION AND CONSOLIDATED SUBSIDIARY Consolidation Worksheet For Year Ending December 31, 2021 Consolidation Entries Accounts Allison Mathias Dobit Credit Consolidated Totals Income Statement Revenues Cost of goods sold $ (6.840,000) $ (4,010,000) 4.808.000 2571 500 ALLISON CORPORATION AND CONSOLIDATED SUBSIDIARY racondation Worksheet For Year Ending December 31, 2021 Consolidation Entries Accounts Allison Mathias Debit Credit Consolidated Totals Income Statement Revenues Cost of goods sold Depreciation expense Amortization expense Interest expense Equity earnings in Mathias Net Income $ (6,840,000) 4,808,000 985,000 485.000 99,000 (525,500 $ (988,500) $ (4.010.000) 2,571 500 343.000 136,000 82.000 $ (877.500) Statement of Retained Earnings Retained earnings 1/1 Net income (above) Dividends declared Retained earnings 12/31 (5,560,000) (988,500 560.000 $ (5 988.500 (2,023.750) (877 500) 50.000 $ (2 851 250) Balance Sheet Cash S S 176,000 Accounts receivable Inventories Investment in Mathias Equipment (ner 108,000 1.060,000 1.920,000 6,863 250 280,000 895.000 3020 82 000 interest expense Equity earnings in Mathias Net income 99,000 (525,500) (988,500) $ $ (877 500) Statement of Retained Earnings Retained earnings 1/1 Net income (above) Dividends declared Retained earnings 12/31 (5,560,000) (988,500) 560.000 $ 5,988,500) (2,023,750) (877 500) 50.000 $ (2 851 250) Balance Sheet Cash Accounts receivable Inventories Investment in Mathias Equipment (net) Patents Unpatented technology Goodwill Total assets $ 108,000 $ 176,000 1,060,000 280,000 1,920.000 895,000 6.863.250 3.920,000 2 129.000 150,000 2.235,000 1,560 000 502,000 $ 16.758,250 $ 5,040,000 Accounts payable Long-term debt Common stock Retained earnings 12/31 Total liabilities and equity (1,569.750) (1,000,000) (8,200,000) (5.988.500 $(16.758,250) (488.750) (1.200.000) (500.000 (2.851,250) S (5040,000) S 18,573,000