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On July 1 , 2 0 2 1 , Truman Company acquired a 7 0 percent interest in Atlanta Company in exchange for consideration of
On July Truman Company acquired a percent interest in Atlanta Company in exchange for consideration of $ in cash and equity securities The remaining percent of Atlantas shares traded closely near an average price that totaled $ both before and after Trumans acquisition.
In reviewing its acquisition, Truman assigned a $ fair value to a patent recently developed by Atlanta, even though it was not recorded within the financial records of the subsidiary. This patent is anticipated to have a remaining life of five years.
The following financial information is available for these two companies for In addition, the subsidiarys income was earned uniformly throughout the year. The subsidiary declared dividends quarterly.
Truman Atlanta
Revenues $ $
Operating expenses
Income of subsidiary
Net income $ $
Retained earnings, $ $
Net income above
Dividends declared
Retained earnings, $ $
Current assets $ $
Investment in Atlanta
Land
Buildings
Total assets $ $
Liabilities $ $
Common stock
Additional paidin capital
Retained earnings,
Total liabilities and stockholders' equity $ $
What is the excess fairvalue assigned to patent and goodwill?
How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests?
How did Truman derive the Investment in Atlanta account balance at the end of
Prepare a worksheet to consolidate the financial statements of these two companies as of December At yearend, there were no intraentity receivables or payables.
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