Allison Corporation acquired all of the outstanding voting stock of Mathias, Incorporated, on January $1,2023,$ in exchange for $$6,387,500$ in cash. Allison intends to maintain Mathias as a wholly owned subsidiary. Both companies have December $31$ fiscal year$-$ends. At the acquisition date, Mathiass stockholders equity was $$2,125,000$ including retained earnings of $$1,625,000.$At the acquisition date, Allison prepared the following fair$-$value allocation schedule for its newly acquired subsidiary:Consideration transferred $ $6,387,500$Mathias stockholders' equity $2,125,000$Excess fair over book value $ $4,262,500$to unpatented technology $(8-$year remaining life$)$$ $1,000,000$ to patents $(10-$year remaining life$)2,750,000$ to increase long$-$term debt $($undervalued$,5-$year remaining life$)(225,000)3,525,000$Goodwill $ $737,500$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$$ $433,125$$ $25,0002024866,25050,000$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 Statement Sales$ $(6,900,000)$$ $(4,025,000)$Cost of goods sold$4,850,0002,581,250$Depreciation expense$1,000,000352,000$Amortization expense$492,500140,500$Interest expense$105,00085,000$Equity earnings in Mathias$(511,250)0$Net income$ $(963,750)$$ $(866,250)$Statement of Retained Earnings Retained earnings, $1/1$$ $(5,590,000)$$ $(2,033,125)$Net income $($above$)(963,750)(866,250)$Dividends declared$560,00050,000$Retained earnings, $12/31$$ $(5,993,750)$$ $(2,849,375)$Balance Sheet Cash$ $112,500$$ $180,500$Accounts receivable$1,075,000287,500$Inventory$1,950,000910,000$Investment in Mathias$6,901,8750$Equipment $($net$)3,950,0002,139,500$Patents$157,5000$Unpatented technology$2,250,0001,575,000$Goodwill$512,5000$Total assets$ $16,909,375$$ $5,092,500$Accounts payable$ $(1,715,625)$$ $(543,125)$Long$-$term debt$(1,000,000)(1,200,000)$Common stock$(8,200,000)(500,000)$Retained earnings, $12/31(5,993,750)(2,849,375)$Total liabilities and equity$ $(16,909,375)$$ $(5,092,500)$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.