On January 1, 2017, Allan Company bought a 15 percent interest in Sysinger Company. The acquisition price of $201,500 reflected an assessment that all of Sysingers accounts were fairly valued within the companys accounting records. During 2017, Sysinger reported net income of $109,100 and declared cash dividends of $32,600. Allan possessed the ability to influence significantly Sysingers 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 Sysingers ownership components:

Consideration transferred by Allan for 80% interest	$	1,420,800
Fair value of Allan's 15% previous ownership		266,400
Noncontrolling interest's 5% fair value		88,800
Total acquisition-date fair value for Sysinger Company	$	1,776,000

Also, as of January 1, 2018, Allan assessed a $413,000 value to an unrecorded customer contract recently negotiated by Sysinger. The customer contract is anticipated to have a remaining life of four years. Sysingers 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:

	Allan Company				Sysinger Company
Revenues	$	(961,200	)		$	(397,000	)
Operating expenses		634,800				240,200
Equity earnings of Sysinger		(50,873	)			0
Gain on revaluation of Investment in Sysinger to fair value		(53,425	)			0
Net income	$	430,698			$	156,800
Retained earnings, January 1	$	(964,300	)		$	(627,200	)
Net income		(430,698	)			(156,800	)
Dividends declared		140,000				41,700
Retained earnings, December 31	$	(1,254,998	)		$	(742,300	)
Current assets	$	287,700			$	564,300
Investment in Sysinger (equity method)		1,698,458				0
Property, plant, and equipment		843,000				609,000
Patented technology		867,600				382,200
Customer contract		0				0
Total assets	$	3,696,758			$	1,555,500
Liabilities	$	(1,327,760	)		$	(88,000	)
Common stock		(915,000	)			(518,000	)
Additional paid-in capital		(199,000	)			(207,200	)
Retained earnings, December 31		(1,254,998	)			(742,300	)
Total liabilities and equities	$	(3,696,758	)		$	(1,555,500	)

A) How should Allan allocate Sysingers 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	0
To customer contract
To goodwill	$0

B) 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

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.