Allison Corporation acquired all of the outstanding voting stock of Mathias, Inc., on January 1,2020, in exchange for $6,162,000 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 $2,070,000 including retained earnings of $1,570,000. At the acquisition date, Allison prepared the following fair-value allocation schedule for its newly acquired subsidiary: 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: 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. 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. Determine the annual excess fair over book value amortization. \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{7}{|c|}{ Consolidation Worksheet } \\ \hline \multicolumn{7}{|c|}{ For Year Ending December 31, 2021} \\ \hline \multirow[b]{2}{*}{ Accounts } & \multirow{2}{*}{\multicolumn{2}{|c|}{ Allison }} & \multirow[b]{2}{*}{ Mathias } & \multicolumn{2}{|c|}{ Consolidation Entries } & \multirow[b]{2}{*}{\begin{tabular}{l} Consolidated \\ Totals \end{tabular}} \\ \hline & & & & Debit & Credit & \\ \hline \multicolumn{7}{|l|}{ Income Statement } \\ \hline Revenues & $ & (6,680,000) & $(3,970,000) & & & \\ \hline Cost of goods sold & & 4,696,000 & 2,545,500 & & & \\ \hline Depreciation expense & & 945,000 & 319,000 & & & \\ \hline Amortization expense & & 465,000 & 124,000 & & & \\ \hline Interest expense & & 83,000 & 74,000 & & & \\ \hline Equity earnings in Mathias & & (563,500) & & & & \\ \hline Net income & $ & (1,054,500) & $(907,500) & & & \\ \hline \multicolumn{7}{|c|}{ Statement of Retained Earnings } \\ \hline Retained earnings 1/1 & & (5,480,000) & (1,998,750) & & & \\ \hline Net income (above) & & (1,054,500) & (907,500) & & & \\ \hline Dividends declared & & 560,000 & 50,000 & & & \\ \hline Retained earnings 12/31 & $ & (5,974,500) & $(2,856,250) & & & \\ \hline \multicolumn{7}{|l|}{ Balance Sheet } \\ \hline Cash & $ & 96,000 & 164,000 & & & \\ \hline Accounts receivable & & 1,020,000 & 260,000 & & & \\ \hline Inventories & & 1,840,000 & 855,000 & & & \\ \hline Investment in Mathias & & 6,760,250 & & & & \\ \hline Equipment (net) & & 3,840,000 & 2,101,000 & & & \\ \hline Patents & & 130,000 & & & & \\ \hline Unpatented technology & & 2,195,000 & 1,520,000 & & & \\ \hline Goodwill & & 474,000 & & & & \\ \hline Total assets & $ & 16,355,250 & $4,900,000 & & & \\ \hline Accounts payable & & (1,180,750) & (343,750) & & & \\ \hline \end{tabular}