On January 1, 2017, Allan Company bought a 15 percent interest in Sysinger Company. The acquisition price of $220,500 reflected an assessment that all of Sysinger's accounts were fairly valued within the company's accounting records. During 2017, Sysinger reported net income of $119,300 and declared cash dividends of $35,500. Allan possessed the ability to influence significantly Sysinger's operations and therefore, accounted for this investment using the equity method. On January 1, 2018, Allan acquired an additional 80 percent interest in Sysinger and provided the following fair-value assessments of Sysinger's ownership components: Consideration transferred by Allan for 808 interest Tair value of Allan's 154 previous ownership Noncontrolling interest'o 58 fair value Total acquisition-date fair value for syninger Compdny $ 1,444,800 270,900 90,300 $ 1,806,000 Also, as of January 1, 2018, Allan assessed a $430,000 value to an unrecorded customer contract recently negotiated by Sysinger. The customer contract is anticipated to have a remaining life of four years. Sysinger's other assets and liabilities were judged to have fair values equal to their book values. Allan elects to continue applying the equity method to this investment for internal reporting purposes. At December 31, 2018, the following financial information is available for consolidation: Revenues Operating expenses Allan Company $(1,000,900) 660,900 Sysinger Company $ (411,000) 248.600 to this investment for internal reporting purposes. At December 31, 2018, the following financial information is available for consolidation: Allan Company $(1,000,900) 660,900 (52,155) Sysinger Company $ (411,000) 248,600 0 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 (37,830) 0 $ 429,985 $ 162,400 $ (962,800) $ (649,600) (429,985) (162,400) 139,800 43, 100 $(1, 252,985) $ (768,900) $ 287300 $ 584,200 1,726,910 0 858,000 628,000 883,000 394,300 0 0 $ 3,755,210 $ 1,606,500 $(1,350,225) S (138,600) (934,000) (531,000) (218,000) (168,000) (1,252,985) (768.900) $(3,755,210) $(1,606,500) a. How should Allan allocate Sysinger's total acquisition-date fair value (January 1, 2018) to the assets acquired and liabilities 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 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 How should Allan allocate Sysinger's total acquisition date fair value (January 1, 2018) to the assets acquired and liabilities assumed for consolidation purposes? Fair value of Sysinger 1/1/18 Book value of Sysinger 1/1/18 Excess fair value over book value To customer contract To goodwill 0 S 0 a. How should Allan allocate Sysinger's total acquisition date fair value (January 1, 2018) to the assets acquired and liabilities 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 financial statements of these two companies as of December 31, 2018. At year-end, there were no intra-entity receivables or payables. sk Complete this question by entering your answers in the tabs below. ences Required a Required B Required Calculate the following as they would appear in Allan's pre-consolidation 2018 statements. Equity in earnings of Sysinger on revaluation of investment in Sysinger to fair value Investment in Sysinger