Allison Corporation acquired all of the outstanding voting stock of Mathias, Inc., on January 1, 2020 in exchange for $5.998,000 cash Allison intends to maintain Mathias as a wholly owned subsidiary. Both companies have December 31 fiscal year-ends. At th acquisition date, Mathias's stockholders' equity was $2,030,000 including retained earnings of $1530.000. At the acquisition date. Allison prepared the following fair value allocation schedule for its newly acquired subsidiary 55,998,000 2.000.000 $3.968,000 Consideration transferred Mathias stockholders' equity Excess fair over book value to unpatented technology (8-year remaining life) to patents (18-year remaining 11fe) to increase long-term debt (undervalued. 5-year remaining life) Goodili 584 2.560,000 (130,000) 1.275.000 $ 690,000 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, 2020 2021 Income $ 468,750 937.500 Dividends $ 25,00 50,000 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, 2020 Incone 5 460,750 937,500 Dividends $ 25,000 50,000 2021 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 Income Statement Sales Cost of goods sold Depreciation expense ortation expense Intereste Equity arning in Mathias 5 (6.520.000) 4,534,000 05.000 445.000 67.000 (601.500 5 (1,120,500) 3(3.930,000) 2,519,500 299,000 112,000 66,000 1 (937.500) $(5.400.000) (1.120.500) 560.000 $(5.960,500) 3(1,073,750) (917,500) 50.000 5(2,061,250) Statement of Retained Earnings Metained earnings 1/1 et Inco (above) Dividends declared Betained earnings 12/11 Balance Sheet Cash accounts receive Inventory Test in this upont () Patents Unputented technology Soodul 152.000 240.000 35,000 2.673,000 1,400,000 $ $4,000 300.000 1,750,000 5.657.250 3,760,000 110.000 2,155,000 446,000 $ 15,952,250 5 (291,750) (1,000,000 08.200.000 5.900.00 5(19.252.150) Accounts Long-ter det Otac Betained in / totality 54,700,000 $(150.750) (1,200,000) (500,000 (1.250 $(4,700,000) 32,250 574,760, 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 dobit 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 Allison Mathias Debit Credit Accounts Consolidated Totals Income Statement Revenues Cost of goods sold Depreciation expense Amortization expense Interest expense Equity earnings in Mathias Net Income $ (6,520,000) S (3.930,000) 4,584,000 2,519,500 905,000 295.000 445,000 112.000 67000 66,000 (501,500) S. (1.120,500) 5 (937.500) Saved Consolidation Worksheet For Year Ending December 31, 2021 Consolidation Entries Allison Mathias Debit Credit Accounts Consolidated Totals Income Statement Revenues Cost of goods sold Depreciation expense Amortization expense Interest expense Equity earnings in Mathias Net income $ (6,520,000) $ (3,930 000) 4,584 000 2,519,500 905,000 295,000 445,000 112 000 67 000 66,000 (601,500) $ (1.120,500) $ (937.500) Statement of Retained Earnings Retained earnings 1/1 Net income (above) Dividends declared Retained earnings 12/31 (5,400.000) (1973.750) (1.120.500) (937,500) 560,000 50,000 S (5.960.500) $ (2.861 250) $ Balance Sheet Cash Accounts receivable Inventories Investment in Mathias Equipment (net) Patents Unpatented technology Goodwill Total assets 84,000 $ 152,000 980,000 240.000 1.760,000 815,000 6,657 250 3.760,000 2,073,000 110.000 2.155,000 1,480.000 446,000 15.952,250 54.760,000 Accounts payable Long-term debt (791.750) (1,000,000) (198,750) (1,200,000)