Allison Corporation acquired all of the outstanding voting stock of Mathias, Incorporated, on January $1,2023,$ in exchange for $$5,875,000$ in cash. Allison intends to maintain Mathias as a wholly owned subsidiary. Both companies have December $31$ fiscal year$-$ends. At the acquisition date, Mathiass stockholders equity was $$2,000,000$ including retained earnings of $$1,500,000.$At the acquisition date, Allison prepared the following fair$-$value allocation schedule for its newly acquired subsidiary:Consideration transferred$ $5,875,000$Mathias stockholders' equity$2,000,000$Excess fair over book value$ $3,875,000$to unpatented technology $(8-$year remaining life$)$$ $800,000$to patents $(10-$year remaining life$)2,500,000$to increase long$-$term debt $($undervalued$,5-$year remaining life$)(100,000)3,200,000$Goodwill$ $675,000$Postacquisition, 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:YearIncomeDividends$2023$$ $480,000$$ $25,0002024960,00050,000$No asset impairments have occurred since the acquisition date.Individual financial statements for each company as of December $31,2024,$ follow. Parentheses indicate credit balances. Dividends declared were paid in the same period.ItemsAllisonMathiasIncome StatementSales$ $(6,400,000)$$ $(3,900,000)$Cost of goods sold$4,500,0002,500,000$Depreciation expense$875,000277,000$Amortization expense$430,000103,000$Interest expense$55,00060,000$Equity earnings in Mathias$(630,000)0$Net income$ $(1,170,000)$$ $(960,000)$Statement of Retained EarningsRetained earnings, $1/1$$ $(5,340,000)$$ $(1,955,000)$Net income $($above$)(1,170,000)(960,000)$Dividends declared$560,00050,000$Retained earnings, $12/31$$ $(5,950,000)$$ $(2,865,000)$Balance SheetCash$ $75,000$$ $143,000$Accounts receivable$950,000225,000$Inventory$1,700,000785,000$Investment in Mathias$6,580,0000$Equipment $($net$)3,700,0002,052,000$Patents$95,0000$Unpatented technology$2,125,0001,450,000$Goodwill$425,0000$Total assets$ $15,650,000$$ $4,655,000$Accounts payable$ $(500,000)$$ $(90,000)$Long$-$term debt$(1,000,000)(1,200,000)$Common stock$(8,200,000)(500,000)$Retained earnings, $12/31(5,950,000)(2,865,000)$Total liabilities and equity$ $(15,650,000)$$ $(4,655,000)$Required:$*$ Determine the annual excess fair over book value amortization.$*$ Prepare a worksheet to determine the consolidated values to be reported on Allisons financial statements.ALLISON CORPORATION AND CONSOLIDATED SUBSIDIARYConsolidation WorksheetFor Year Ending December $31,2024$AccountsAllisonMathiasConsolidation EntriesConsolidated TotalsDebitCreditIncome StatementSales$$(6,400,000)$$$(3,900,000)$Cost of goods sold$4,500,0002,500,000$Depreciation expense$875,000277,000$Amortization expense$430,000103,000$Interest expense$55,00060,000$Equity earnings in Mathias$(630,000)$Net income$$(1,170,000)$$$(960,000)$Statement of Retained EarningsRetained earnings $1/1(5,340,000)(1,955,000)$Net income $($above$)(1,170,000)(960,000)$Dividends declared$560,00050,000$Retained earnings $12/31$$$(5,950,000)$$$(2,865,000)$Balance SheetCash$$75,000$$$143,000$Accounts receivable$950,000225,000$Inventories$1,700,000785,000$Investment in Mathias$6,580,000$Equipment $($net$)3,700,0002,052,000$Patents$95,000$Unpatented technology$2,125,0001,450,000$Goodwill$425,000$Total assets$$15,650,000$$$4,655,000$Accounts payable$(500,000)(90,000)$Long$-$term debt$(1,000,000)(1,200,000)$Common stock$(8,200,000)(500,000)$Retained earnings $12/31(5,950,000)(2,865,000)$Total liabilities and equity$$(15,650,000)$$$(4,655,000)$$$0$$$0$