On January 1, 2020, Allan Company bought a 15 percent interest in Sysinger Company. The acquisition price of $187,500 reflected an assessment that all of Sysinger's accounts were fairly valued within the company's accounting records. During 2020. Sysinger reported net income of $101,600 and declared cash dividends of $30,500. Allan possessed the ability to significantly influence Sysinger's operations and therefore, accounted for this investment using the equity method. On January 1, 2021, 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 809 interest Fair value of Allan's 154 previous ownership Noncontrolling interest's 51 fair value Total acquisition-date fair value for Sysinger Company $ 1,403,200 263,100 87.700 $1,754,000 Also, as of January 1, 2021, Allan assessed a $401,000 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, 2021, the following financial information is available for consolidation: Revenues Operating expenses Equity carnings of Sysinger Gain on revaluation of Investment in Sysinger to fair value Net Income Retained earnings, January 1 Net income Dividends declared Retained earningo, December 31 Current assets Investment in Sysinger (equity method) Property, plant, and equipment Patented technology Allan Sysinger Company Company $ (933,300) $ (383,000) 616,500 231,800 (48,403) 0 (64,935) 0 $ 430,138 $ 151,200 $ (963, 100) $ (604, 800) (430,138) (151,200) 139,700 40,300 $(1,253,538) $(715,700) $ 287,400 $ 544,300 1,676,418 0 828,000 593,000 852,100 371,900 Patented technology Customer contract Total assets Liabilities Common stock Additional paid-in capital Retained earnings, December 31 Total liabilities and equities 852,100 371,900 0 0 $ 3,643,918 $ 1,509,200 $(1,306,380) $ (89,300) (901,000) (503,000) (183,000) (201,200) (1,253,538) (715,700) $(3,643,918) $(1,509,200) a. How should Allan allocate Sysinger's total acquisition date fair value (January 1, 2021) to the assets acquired and liabilities assumed for consolidation purposes? b. Calculate the following as they would appear in Allan's pre-consolidation 2021 statements. Equity in earnings of Sysinger Gain 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, 2021 At year-end, there were no intra-entity receivables or payables. Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Reg B3 Required How should Allan allocate Sysinger's total acquisition-date fair value (January 1, 2021) to the assets acquired and abilities assumed for consolidation purposes? Reg A Red B1 Reg B2 Req B3 Required Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2021. 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. Input all amounts as positive values.) Show less ALLAN AND SYSINGER Consolidation Worksheet For Year Ending December 31, 2021 Consolidation Entries Debit Credit Accounts Noncontrolling Consolidated Interest Totals Allan Sysinger Company Company $ (933,300) $ (383.000) 616,500 231,800 (48.403) 0 (64.935) 0 $ 430,138 $ (151,200) Revenues Operating expenses Equity earings of Sysinger Gain on revaluation of Investment in Sysinger to fair value Separate company net income Consolidated net income Ni attributable to noncontrolling interest Ni attributable to Allan Company Retained earnings, January 1 Net income Dividends declared Retained earnings December 31 $ 1963,100) $ (604,800) (430,138) (151,200) 139,700 40,300 $ (1.253.538) $ (715.7003 $ 430,138 $ (151,200) Separate company net income Consolidated net income Ni attributable to noncontrolling interest Ni attributable to Allan Company 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 Goodwill Total assets Liabilities Common stock Additional paid in capital Retained earnings, December 31 NCI in Sysinger, 1/1 NCI in Sysinger, 12/31 Total liabilities and equities $(963,100) $ (604,800) (430,138) (151.200) 139,700 40.300 $ (1,253,538) $ (715,700) $ 287.400 $ 544,300 1,676.418 0 828,000 593,000 852.100 371,900 0 0 0 $ 3,643,918 $1,500,200 $ (1,306,380) $ (89.300) (901.000) (503,000) (183.000) (201,200) (1.263,538) (715.700) 0 0 0 0 $ (3,643,918) $ (1.509,200) $ $ 0 $ D