Allison Corporation acquired all of the outstanding voting stock of Mathias, Inc., on January 1, 2017, in exchange for $6,285,000 in cash. Allison intends to maintain Mathias as a wholly owned subsidiary. Both companies have December 31 fiscal year-ends. At the acquisition date, Mathiass stockholders equity was $2,100,000 including retained earnings of $1,600,000. At the acquisition date, Allison prepared the following fair value allocation schedule for its newly acquired subsidiary: Consideration transferred $ 6,285,000 Mathias stockholders' equity 2,100,000 Excess fair over book value $ 4,185,000 to unpatented technology (8-year remaining life) $ 960,000 to patents (10-year remaining life) 2,700,000 to increase long-term debt (undervalued, 5-year remaining life) (200,000 ) 3,460,000 Goodwill $ 725,000 Post-acquisition, 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: Income Dividends 2017 $ 442,500 $ 25,000 2018 885,000 50,000 No asset impairments have occurred since the acquisition date. Individual financial statements for each company as of December 31, 2018, appear below. Parentheses indicate credit balances. Dividends declared were paid in the same period. Allison Mathias Income Statement Sales $ (6,800,000 ) $ (4,000,000 ) Cost of goods sold 4,780,000 2,565,000 Depreciation expense 975,000 337,000 Amortization expense 480,000 133,000 Interest expense 95,000 80,000 Equity earnings in Mathias (535,000 ) 0 Net income $ (1,005,000 ) $ (885,000 ) Statement of Retained Earnings Retained earnings 1/1 $ (5,540,000 ) $ (2,017,500 ) Net income (above) (1,005,000 ) (885,000 ) Dividends declared 560,000 50,000 Retained earnings 12/31 $ (5,985,000 ) $ (2,852,500 ) Balance Sheet Cash $ 105,000 $ 173,000 Accounts receivable 1,050,000 275,000 Inventory 1,900,000 885,000 Investment in Mathias 6,837,500 0 Equipment (net) 3,900,000 2,122,000 Patents 145,000 0 Unpatented technology 2,225,000 1,550,000 Goodwill 495,000 0 Total assets $ 16,657,500 $ 5,005,000 Accounts payable $ (1,472,500 ) $ (452,500 ) Long-term debt $ (1,000,000 ) $ (1,200,000 ) Common stock (8,200,000 ) (500,000 ) Retained earnings 12/31 (5,985,000 ) (2,852,500 ) Total liabilities and equity $ (16,657,500 ) $ (5,005,000 ) Required: Determine Allison's December 31, 2018, Investment in Mathias balance. Prepare a worksheet to determine the consolidated values to be reported on Allisons financial statements.

Allson Corporation scouredal of the outstanding voting stock of Mechelne, on January 2017 in exchange for $6.295.000 cash. Also intends to maintain Mathsss wholly owned subsidiary. Both companies have December 31scal year-ends. At the Culto dateMachi's stockholders' equity was $2.100.000 including restres e n s of $1.600.000 At the acquisition date. Allson prepares the following free location schedule for new scoured subsidiary Surat Erd 34,, touted tedy nie 11) to life) to inclouredt udvald, Swarning life) 2,700, Posecution, Allison employs the equity method to counters investment in Mathies. During the two years following the business combination Mathis reports the following income and dividends Inco Dividends No osset impairments have occurred since the acoustion diste. Ing Vidual financial statements for each company as of December 31, 2019, appear below. Parentheses Indicate credite balances Dividends declared were paid in the same period Allison Mathias Income Statement $ (6,800,00) Cost of Depreciation o sold n 5(4.000,00) 2,565,820 337, 133.ee (535,820) $ (1.005.00) 5 885,) Interest expono uity earnings in ta Nut Income Statement of Retained tannings Retained earnings 1/1 Nut Income (above) Dividends declared Betalne warnings 12/31 alance Sheet $ (5,540,000) (1,6es, e) $(2,017,50) (885,8 ) se, se $(2.152,500) (5. 5. ) Accounts receivable 275.ee 895, List in this u nt(t) 1,9ee, see 6,832, see 3.9e, see 2.122.ee 2,225, tarted technology GI Totalt counts Longbt Total l lits and out Required .. Determine A son's December 31, 2018 investment in the balance b. Prepare worksheet to determine the consoled values to be reported on A n nonce statement