Allison Corporation acquired all of the outstanding voting stock of Mathias, Inc., on January 1, 2020. in exchange for $6,018,500 in cash. Allison intends to maintain Mathias as a wholly owned subsidiary. Both companies have December 31 fiscal year-ends. At the acquisition dete, Mathias's stockholders' equity was $2,035.000 including retained earnings of $1.535.000. At the acquisition date, Allison prepared the following fair-value allocation schedule for its newly acquired subsidiary: $6,018,500 2,035,000 $3,983, 500 Consideration transferred Mathias stockholders' equity Exceea tai: OQ- book value to unpatented technology (8-year remaining 11) to patenta (10-year semaining 1120) to increase long-term debt (undervalued, 5-year remaining 11) Goodwill 6 856,000 2,570,000 (135,000) 3,291,000 692, 500 6 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 6 466,875 933, 750 Dividenda 625,000 50,000 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 6 (6, 540,000) 4,598.000 910,000 447,500 69,000 (596, 730) $ (1,112,250) 6(3,935,000) 2,522,750 298,000 113,500 67,000 6 (933, 750) 6 (5,410,000) (1, 112,250) 550,000 6 (5,962, 250) $(1,976, 875) (933, 750) 50,000 6(2,860, 625) Income statement Sales Coat of goods and Depreciation expense Amortization expense Interest expense Equity earnings in Mathias Net Income statement of Retained Earninga Retained earninga 1/1 Net income (above) Dividenda declared Retained earnings 12/31 Balance sheet Cash Accounts receivable Inventory Investment in Mathias Equipment (net) Patenta Unpatented technology Goodwill Total ansata Accounta payable Long-term debt Common stock Retained earnings 12/31 Total liabilities and equity 6 153,500 242,500 220,000 0 2,076,500 1,485,000 6 85,500 985,000 1, 770,000 6,670, 125 3, 770,000 112,500 2,160,000 449, 500 $ 16,002, 625 6 (840,375) (1,000,000) (2,200,000) (5,962, 250) 6(16,002, 625) 6 4,777, 500 (216,875) (1,200,000) (500,000) (2,860, 625) 6(4,777,500) 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