On January 1, 2017, Allan Company bought a 15 percent Interest In Sysinger Company. The acquisition price of $194,500 reflected an assessment that all of Sysinger's accounts were falrly valued within the company's accounting records. During 2017, Sysinger reported net Income of $105,400 and declared cash dividends of $31,600. Allan possessed the ablty to Influence significantly Sysinger's operations and, therefore, accounted for this Investment using the equity method. On January 1, 2018, Allan acqulred an additional 80 percent Interest In Sysinger and provided the following falr-value assessments of Sysinger's ownershlp components 10 points 02:08:46 Consideration transferred by Allan for 80% interest Fair value of Allan's 15% previous ownership Non controlling interest's 5% fair value Total acquisition-date fair value for Sysinger Company 1,489,608 264,388 88,188 $ 1,762,988 Also, as of January 1, 2018, Allan assessed a $404,000 value to an unrecorded customer contract recently negotiated by Syslnger. The customer contract Is anticipated to have a remalning life of four years. Sysinger's other assets and liabilities were Judged to have falr values equal to thelr book values. Allan elects to continue applyling the equlty method to this Investment for Internal reporting purposes At December 31, 2018, the following financial Information is avallable for consolidation: Allan Company Sysinger Company (948,288) (388,8e8) 234,800 Revenues Operating expenses Equity earnings of Sysinger Gain on revaluation of Investment in Sysinger to 621,888 (49,598) fair value 58,738) 427,528 153,288 $ (957,288) (612,888) 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 (427,528) 138,988 (153,288) 48,888 $(1,245,828) (725,288) $ 285,608 551,488 1,684,738 837,8e8 861,488 68e,888 376,488 $ 3,668,738 $ 1,527,888 $(1,329,918) (87,288) Total assets Liabilities Common stock Additional paid-in capital Retained earnings, December 31 (986,888) (187,808) (1,245,828) (511,888) (284,488) (725,288) Total liabilities and equities $(3,668,73) $(1,527,888) a. How should Allan allocate Sysinger's total acquisition-date fair value (January 1, 2018) to the assets acquired and liabilltles assumed for consolidation purposes? b. Calculate the following as they would appear In Allan's pre-consolidation 2018 statements. c. Prepare a worksheet to consolidate the financlal statements of these two companles as of December 31, 2018 At year-end, there were no Intra-entity recelvables or payables. On January 1, 2017, Allan Company bought a 15 percent Interest In Sysinger Company. The acquisition price of $194,500 reflected an assessment that all of Sysinger's accounts were falrly valued within the company's accounting records. During 2017, Sysinger reported net Income of $105,400 and declared cash dividends of $31,600. Allan possessed the ablty to Influence significantly Sysinger's operations and, therefore, accounted for this Investment using the equity method. On January 1, 2018, Allan acqulred an additional 80 percent Interest In Sysinger and provided the following falr-value assessments of Sysinger's ownershlp components 10 points 02:08:46 Consideration transferred by Allan for 80% interest Fair value of Allan's 15% previous ownership Non controlling interest's 5% fair value Total acquisition-date fair value for Sysinger Company 1,489,608 264,388 88,188 $ 1,762,988 Also, as of January 1, 2018, Allan assessed a $404,000 value to an unrecorded customer contract recently negotiated by Syslnger. The customer contract Is anticipated to have a remalning life of four years. Sysinger's other assets and liabilities were Judged to have falr values equal to thelr book values. Allan elects to continue applyling the equlty method to this Investment for Internal reporting purposes At December 31, 2018, the following financial Information is avallable for consolidation: Allan Company Sysinger Company (948,288) (388,8e8) 234,800 Revenues Operating expenses Equity earnings of Sysinger Gain on revaluation of Investment in Sysinger to 621,888 (49,598) fair value 58,738) 427,528 153,288 $ (957,288) (612,888) 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 (427,528) 138,988 (153,288) 48,888 $(1,245,828) (725,288) $ 285,608 551,488 1,684,738 837,8e8 861,488 68e,888 376,488 $ 3,668,738 $ 1,527,888 $(1,329,918) (87,288) Total assets Liabilities Common stock Additional paid-in capital Retained earnings, December 31 (986,888) (187,808) (1,245,828) (511,888) (284,488) (725,288) Total liabilities and equities $(3,668,73) $(1,527,888) a. How should Allan allocate Sysinger's total acquisition-date fair value (January 1, 2018) to the assets acquired and liabilltles assumed for consolidation purposes? b. Calculate the following as they would appear In Allan's pre-consolidation 2018 statements. c. Prepare a worksheet to consolidate the financlal statements of these two companles as of December 31, 2018 At year-end, there were no Intra-entity recelvables or payables