On January 1, 2020. Allan Company bought a 15 percent interest in Sysinger Company. The acquisition price of $210,500 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 $113,900 and declared cash dividends of $34.000. 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 80% interest Fair value of Allan's 15% previous ownership Noncontrolling interest's 5% fair value Total acquisition-date fair value for Sysinger Company $ 1,428,888 267,980 89,380 $ 1,786, ege Also, as of January 1, 2021. Allan assessed a $421.000 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: Sysinger Company $ (406,000) 245,600 B 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 Allan Company $ (979,900) 647,100 (52,393) (45,415) $ 430,608 $ (964,200) (438,608) 139,900 $(1,254,908) $ 287,700 1,788,623 849,eae 873,700 $ 160,400 $ (641,680) (168,480) 42,600 $ (759,480) $ 577,280 $ 3,719,023 $(1,333,115) (922,600) (209,690) (1,254,908) $ (3,719,023) 617,00 387,380 B $ 1,581,500 $ (114,180) (524,690) (184,80) (759,480) $(1,581,580) .. 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. Reg A Reg B1 Reg B2 Reg B3 Required C 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 0 $ 0 Reg A Req B1 > Reg A Red B1 Reg B2 Reg 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 Reg A Reg B1 Reg B2 Reg B3 Required c 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 Reg B1 Req 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 Reg A Reg 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 Debit Credit Noncontrolling Consolidated Interest Totals Allan Company S (979,900) 647.100 (52,393) (45,415) S 430.608 Sysinger Company $ (406,000) 245,600 0 0 $ (160.400) Revenues Operating expenses Equity earnings 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 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 S (964,200) $ (641,600) (430,008) (160,400) 139.900 42.800 S (1,254,908) $ (759,400) S 287.700 $ 577 200 1.708,623 0 849,000 617.000 873.700 387.300 0 0 0 S 3.719,023 $ 1.581.500 S (1,333, 115) $ (114,100) (922,000) (524,000) (209,000) (184,000) (1,254,908) (759,400) 0 0 0 0 $ (3,719,023) $ (1,581,500) $ S 0 s 0