On January 1, 2021, Petterson, Inc. purchased 75% of Singer Company for $600,000. At the acquisition date, Singer's total fair market value, including non controlling interest, was assessed at $800,000.

At the acquisition date, Singer's book value was $700,000.

Several individual items on Singer's January 1, 2021 financial report had fair market values different from book values, as follows:

Equipment - 5 year remaining life BV: 250,000 FMV: 300,000

Patent - 4 years remaining BV: 104,000 FMV: 120,000

Peterson uses the Equity Method to account for investments. At the end of 2021, there were no receivables or payables between the companies.

1) Prepare Fair Value Allocation as of January 1, 2021.

2) Prepare Consolidated Journal Entries for December 31, 2021.

3) Prepare Consolidated Worksheet for December 31, 2021.

Please show the steps to receiving the numbers when applicable, as I am trying to gain a better understanding of consolidation of companies. Thank you!