In reviewing its acquisition, Truman assigned a $130,500 fair value to a patent recently developed by Atlanta, even though it was not recorded within the financial records of the subsidiary. This patent is anticipated to have a remaining life of five years. The following financial information is available for these two companies for 2018. In addition, the subsidiary's income was earned uniformly throughout the year. The subsidiary declared dividends quarterly. $ $ Revenues Operating expenses Income of subsidiary Truman (811,435) 474,000 (54,565) (392,000) Atlanta (507,000) 325,000 0 Net income $ $ (182,000) Retained earnings, 1/1/18 Net income (above) Dividends declared Retained earnings, 12/31/18 Current assets Investment in Atlanta Land Buildings Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/18 Total liabilities and stockholders' equity $ (919,000) (392,000) 140,000 $(1,171,000) $ 579, 410 779,590 478,000 746,000 $ 2,583,000 $ (912,000) (95,000) (405,000) (1,171,000) $(2,583,000) $ (502,000) (182,000) 90,000 $ (594,000) $ 421,000 0 275,000 666,000 $ 1,362,000 $ ( 448,000) (300,000) (20,000) (594,000) $(1,362,000) a. How did Truman allocate Atlanta's acquisition-date fair value to the various assets acquired and liabilities assumed in the combination? b. How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests? c. How did Truman derive the Investment in Atlanta account balance at the end of 2018? d. Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2018. At year-end, there were no intra-entity receivables or payables. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2018. At year-end, there were no intra- entity receivables or payables. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and ent this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit columi of the worksheet. Amounts in the Debit and Credit columns should be entered as positive. Negative amounts for the Noncontrolling Interest and Consolidated Totals columns should be entered with a minus sign.) Show less TRUMAN COMPANY AND SUBSIDIARY ATLANTA COMPANY Consolidation Worksheet For Year Ending December 31, 2018 Atlanta Consolidation Entries Truman Noncontrolling Consolidated Interest Totals Debit Credit Revenues $ 253,500 $ (1,064,935) Company Company $ (811,435) $ (507,000) 474,000 325,000 (54,565) $ (392,000) $ (182,000) Operating expenses Net income of subsidiary Separate company net income Consolidated net income 162,500 $ (1,064,935) Net income attributable to NCI Net income attributable to Truman $ (1,064,935) 502,000 Retained earnings, 1/1 Net income (919,000) (392,000) $ (919,000) $ (392,000) 140,000 $ (1,171,000) $ (502,000) (182,000) 90,000 (594,000) Dividends declared Retained earnings 12/31 $ (1,311,000) Current assets $ 421,000 Investment in Atlanta 579,410 $ 779,590 478,000 Land 275,000 753,000 Duildinan 7Annn 44420 Land 478,000 746,000 275,000 666,000 Buildings Patent 130,500 Goodwill 82,250 Total assets $ 1,362,000 753,000 1,412,000 130,500 82,250 $ 2,377,750 $ (1,360,000) (95,000) (405,000) (1,171,000) Liabilities $ 2,583,000 $ (912,000) $ (95,000) (405,000) (1,171,000) Common stock 300,000 (448,000) (300,000) (20,000) (594,000) 20,000 Additional paid in capital Retained earnings 12/31 Noncontrolling interest 7/1 Noncontrolling interest 12/31 Total liabilities and equity 0 $ (2,583,000) $ (1,362,000) $ 1,288,250 $ 162,500 $ (3,031,000)