n July 1, 2018, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $777,700 in cash and equity securities. The remaining 30 percent of Atlantas shares traded closely near an average price that totaled $333,300 both before and after Trumans acquisition.

In reviewing its acquisition, Truman assigned a $147,500 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 subsidiarys income was earned uniformly throughout the year. The subsidiary declared dividends quarterly.

	Truman				Atlanta
Revenues	$	(805,725	)		$	(500,000	)
Operating expenses		480,000				344,000
Income of subsidiary		(44,275	)			0
Net income	$	(370,000	)		$	(156,000	)
Retained earnings, 1/1/18	$	(895,000	)		$	(520,000	)
Net income (above)		(370,000	)			(156,000	)
Dividends declared		155,000				50,000
Retained earnings, 12/31/18	$	(1,110,000	)		$	(626,000	)
Current assets	$	509,525			$	284,000
Investment in Atlanta		804,475				0
Land		479,000				291,000
Buildings		725,000				721,000
Total assets	$	2,518,000			$	1,296,000
Liabilities	$	(908,000	)		$	(350,000	)
Common stock		(95,000	)			(300,000	)
Additional paid-in capital		(405,000	)			(20,000	)
Retained earnings, 12/31/18		(1,110,000	)			(626,000	)
Total liabilities and stockholders' equity	$	(2,518,000	)		$	(1,296,000	)

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 enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column 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.)

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