Allison Corporation noquired all of the outstanding voting stock of Mathias Inc on January 1, 2020, in exchange for $6.326.000 in canh Allison intends to maintain Mathis as a wholly owned subsidiary. Both companies have December 31 flucal year-ends. At the acquisition date, Mathias's stockholders' equity was $2.110,000 including retained earnings of $1,610,000 At the acquisition date, Allison prepared the following fair value allocation schedule for its newly acquired subnidiary $ 5,325.000 2.110,000 $ 4,216.000 Consideration transferred Mathias stockholders' equity Excess for over book value 10 Unpatented technology (8-year remaining life) to patents (10-year remaining e) to increase long-term debt (undervalued, 5-year remaining ife) Goodwill $ 975,000 2.720,000 (210.000) 3.486.000 $ 730.000 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 $ 438.750 877 500 Dividends $ 25,000 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 $ (6,840,000) 4,808,000 985,000 485,000 99,000 (525,500) $ (988,500) $ (4,010,000) 2,571,500 343,000 136.000 82,000 $ (877,500) $ (5,560,000) (988,500) 560,000 $ (5,988,500) $ (2,023,750) (877,500 50.000 $ (2.851,250) Income Statement Sales Cost of goods sold Depreciation expense Amortization expense Interest expense Equity earings 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 $ 108,000 1,060,000 1,920,000 6,863,250 3,920,000 150,000 2,235,000 502,000 $ 16,758,250 $ (1,569,750) (1,000,000) (8,200,000) (5,988,500) $(16,758,250) $ 176,000 280,000 895,000 0 2,129,000 0 1.560,000 0 $ 5,040,000 $ (488,750) (1,200,000) (500,000) (2,851,250) $ (5,040,000) 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. Required A Required B Determine the annual excess fair over book value amortization. Annual excess fair over book value amortization