On January 1, 2020, Allan Company bought a 15 percent Interest in Sysinger Company. The acquisition price of $228,500 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 $123,500 and declared cash dividends of $36.700. 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 808 $1,457,600 interest Pair value of Allan's 154 previous 273,300 ownership Noncontrolling interest's se fair value 91,100 Total acquisition date fair value for $1,822,000 Sysinger Company Also, as of January 1, 2021, Allan assessed a $438.000 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 abilities 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: Allan Sysinger Company Company $(1,019,600) $ (416,000) 673,200 251,600 (52, 155 ) 0 (31,780) 430, 335 $ $ 164,400 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 $ (963, 600) $ (430,335) 139,900 $(1,254,035) $ $ 287,500 $ 1,741, 635 (657, 600) (164,400) 43,600 (778,400) 591,300 0 865,000 633,000 890, 200 397,400 0 0 $ 3,784,335 $ 1,621,700 $(1,363,300) $ (129,300) (941,000) (541,000) (226,000) (173,000) (1,254,035) (778,400) $(3,784,335) $(1,621,700) Req B3 Required Reg A Reg B1 Reg B2 How should Allan allocate Sysinger's total acquisition-date fair value (January 1, 2021) to the assets acquired and liabilities assumed for consolidation purposes? Fair value of Sysinger 1/1/21 Book value of Sysinger 1/1/21 Excess fair value over book value To customer contract To goodwill Reg A Req B1 Reg B2 Req B3 Required Calculate the Equity in earnings of Sysinger in Allan's pre-consolidation 2021 statements. 2021 net income Amortization Equity in earnings of Sysinger Req B3 Required Reg A Req B1 Req B2 Calculate the Gain on revaluation of Investment in Sysinger to fair value in Allan's pre- consolidation 2021 statements. Consideration transferred 2020 net income 2020 dividends Book value at 1/1/21 Fair value at 1/1/21 Gain on revaluation Reg A Req B1 Reg B2 Reg B3 Required Calculate the Investment in Sysinger in Allan's pre-consolidation 2021 statements. Fair value at 1/1/21 Consideration transferred 1/1/21 Equity earnings 2021 Net income Customer contract amortization Dividends Investment in Sysinger 12/31/21 0 Reg A Req B1 Req B2 Reg 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 Accounts Allan Sysinger Debit Credit Noncontrolling Consolidated Company Company Interest Totals S $ Revenues (1.019,600)| (416,000) Operating expenses 673,200 251,600 Equity earnings of Sysinger (52,155) Gain on revaluation of Investment in Sysinger to fair value (31,780) 0 $ Separate company net income S 430,335 (164,400) Consolidated net income NI attributable to noncontrolling interest NI attributable to Allan Company S $ Retained earnings, January 1 (963,600) (657,600) Net income (430,335) (164,400) Dividends declared 139,900 43,600i S $ Retained earnings, December 31 (1,254,035) (778,400) Current assets S 287,500 $ 591,300 Investment in Sysinger (equity method) 1,741,635 0 Property, plant, and equipment 865,000 633,000 Patented technology 890,200 397,400 Customer contract 0 0 Goodwill 0 S $ Total assets 3,784,335 1,621,700 S $ Liabilities (1,363,300) (129,300) Common stock (941,000) (541,000) Additional paid in capital (226,000) (173,000) Retained earnings, December 31 (1,254,035) (778,400) NCI in Sysinger, 1/1 0 0 NCI in Sysinger, 12/31 0 0 S Total liabilities and equities $ (3,784,335) (1,621,700)