Company $ (991,600) 654,800 (52,345) Company $ (489, eee) 247, 480 Revenues Operating expenses Equity earnings of Sysinger Gain on revaluation of Investment in Sysinger to fair value Net income Retained earnings, January 1 Net income Dividends declared Retained earnings, December 31 Current assets Investment in Sysinger (equity method) Property, plant, and equipment Patented technology Customer contract Total assets Liabilities Common stock Additional paid in capital Retained earnings, December 31 Total liabilities and equities (39,810) $ 428,955 $ (960,500) (428,955) 139,40e $(1,250, 255) $ 286,600 1,719,690 855,800 879,900 $ 161,600 $ (646, 480) (161,680) 42,900 $ (765, 100) $ S 581,400 623,800 391,100 $ 3,741,199 $(1,345,135) (930, 800) (216,800) (1,250, 255) $(3,741,190) $ 1,595,500 $ (121,408) (529,880) (180, eee) (765,100) $(1,595,500) 9. How should Allan allocate Sysinger's total acquisition-date fair value (January 1, 2021) to the assets acquired and liabilities assumed for consolidation purposes? b. Calculate the following as they would appear in Allan's pre-consolidation 2021 statements. Equity in earnings of Sysinger Gain on revaluation of Investment in Sysinger to fair value Investment in Sysinger c. Prepare a worksheet to consolidate the financial statements of two companies as of December 31, 2 At year-end, there were no intra-entity receivables or payables. Reg A Reg B1 Reg B2 Reg B3 Required Calculate the Equity in earnings of Sysinger in Allan's pre-consolidation 2021 statements. S 2021 net income Amortization Equity in earnings of Sysinger 161.600 x (106,500) X 52,345 Is Reg A Reg B1 Reg B2 Reg B3 Required C Calculate the Investment in Sysinger in Allan's pre-consolidation 2021 statements. IS 269.700 1.438.400 Fair value at 1/1/21 Consideration transferred 1/1/21 Equity earnings 2021 Net income Customer contract amortization Dividends 40.755 S 1.719,690 Investment in Sysinger 12/31/21 Accounts ALLAN AND SY SINGER Consolidation Worksheet For Year Ending December 31, 2021 Consolidation Entries Allan Sysinger Debit Credit Company Company $ (991,600) $ (409,000) 654,800 247.400 108,500 (52.345) 0 52.345 (39.810) 0 S 428.955 S (161.600) Noncontrolling Interest Consolidated Totals s (1.400,600) 1.008.700 (39.810) Revenues Operating expenses Equity earnings of Sysinger Gain on revaluation of Investment in Sysinger to fair value Separate company net income Consolidated net income NI attributable to noncontrolling interest NI attributable to Allan Company Retained earnings, January 1 S (2.755) X IS S (431.710) 2.755 (428,955) X (960,500) (428.955) 139,400 646,400 Net income Dividends declared 40.755 > 2.145 S (646,400) (161,600) 42.900 $ (765,100) IS 581,400 0 Retained earnings, December 31 S 1.250.055 S (960.500) (428.955) 139.400 Is (1.250.055) s 288,600 1.719,690 855,000 879.900 0 Current assets Investment in Sysinger (equity method) Property, plant, and equipment Patented technology Customer contract Goodwill Total assets 40.755 623,000 391,100 0 0 426.000 16,600 1.478,000 1.271.000 319,500 16.600 3.953.100 S 1.595,500 IS Liabilities $ 3.741,190 S (1,345,135) (930,000) (216,000) (1.250.055) 0 $ (121,400) (529.000) (180.000) (765,100) 0 Common stock Additional paid in capital Retained earnings. December 31 NCI in Sysinger, 1/1 NCI in Sysinger, 12/31 Total liabilities and equities 529,000 180.000 $ (1.468,535) (930.000) 216.000 1.250.055 89.900 (89,900) X (94.800) 0 S (90.510) 0 S (1.595,500) IS 1.997.600 Is 130.655 IS (3.741,190) 3.953.100