Allison Corporation acquired all of the outstanding voting stock of Mathias, Inc. on January 1, 2017, in exchange for $6.203.000 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 $2,080,000 including retained earnings of S1,580,000 At the acquisition date, Allison prepared the following fair value allocation schedule for its newly acquired subsidiary $6,203,000 2,000,000 54,123,000 Consideration transferred Mathias stockholders' equity Excess fair over book value to unpatented technology (8-year renaining life) to patents (10-year remaining life) to increase long term debt (undervalued, 5-year renaining 1ste) Goodwill $920,000 2,660.000 (180.000) 3,400,000 5715,000 Post-acquisition, 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 2017 2010 Income $.450,000 900,000 Dividends $ 25,000 50,000 No asset impairments have occurred since the acquisition date Individual financial statements for each company as of December 31, 2018, appear below Parentheses indicate credit balances Dividends declared were paid in the same period, Allison Mathias $ (6,720,000) 4,724,000 955,000 478,000 87,000 (554,000) $ (1,038,000) $(3,980,000) 2,552,000 325,000 127,000 76,000 $ (900,000) $ (5,500,000) (1,038,000) 560,000 $ (5,978,000) $(2,095,000) (900,000) 50,000 $(2,855,600) Income Statement Sales Cost of goods sold Depreciation expense Amortization expense Interest expense Equity earnings in Mathias Net income Statement of Retained Earnings Retained earnings 1/1 Net income (above) Dividends declared Retained earnings 12/31 Balance Sheet Cash Accounts receivable Inventory Investment in Mathias Equipment (net) Patents Unpatented technology Goodwill Total assets Accounts payable Long-term debt Common stock Retained earnings 12/31 Total liabilities and equity $ 167,200 265,000 865,000 @ 2,108,000 1,530,000 $ 99,800 1,030,000 1,860,000 6,786,000 3,860,000 135,000 2,205,000 481,000 $ 16,456,000 $ (1,278,000) $ (1,000,000) (8,200,000) (5,978,000) $(16,456,000) $ 4,935,000 $ (380,000) $(1,200,000) (500,000) (2,855,000) $(4,935,000) Required: a. Determine Allison's December 31, 2018, Investment in Mathias balance. b. Prepare a worksheet to determine the consolidated values to be reported on Allison's financial stateme Complete this question by entering your answers in the tabs below. Required A Required B Determine Allison's December 31, 2018, Investment in Mathias balance. Investment balance at 12/31/18 Roque Required B > ALLISON CORPORATION AND CONSOLIDATED SUBSIDIARY Consolidation Worksheet For Year Ending December 31, 2018 Consolidation Entries Accounts Allison Mathias Debit Credit Consolidated Totals Income Statement Revenues Cost of goods sold Depreciation expense Amortization expense Interest expense Equity earnings in Mathias Net income S (6,720,000) $ (3,980,000) 4,724,000 2.552,000 955 000 325,000 470,000 127,000 87.000 76.000 (554,000) 5 (1,038,000) (900,000) Statement of Retained Earnings Retained earnings 1/1 Net income (above) Dividends declared Retained earnings 12/31 0 (5,500,000 (2.005,000) (1,038,000) (900,000) 560,000 50,000 $ (5,978,000) S (2,855,000) 0 Balance Sheet Cash Accounts receivable Inventories Investment in Mathias Equipment (net) Patents Unpatented technology Goodwill Total assets $ 99,000 S 167 000 1.030,000 265,000 1,860,000 865.000 6,786,000 3,860,000 2,108,000 135,000 2,205,000 1,530,000 481,000 $ 16.456,000 $4.935,000 $ 0 Accounts payable Long-term debt Common stock Retained earnings 12/31 Total abilities and equity (1278,000) (1,000,000) (8.200,000) (5,978,000) S(16,455,000) (380,000) (1,200,000) (500 000) (2,855,000) S (4.935,000) $ 0