On July 1, 2015, Truman Company acquired a 70% interest in Atlanta Company in exchange for consideration of $720,000 in ash and equity securities. The remaining 30% of Atlantas shares traded closely near an average price that totaled $290,000 both before and after Trumans acquisition.

In reviewing its acquisition, Truman assigned a $100,000 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 2015. In addition, the subsidiarys income was earned uniformly throughout the year. The subsidiary declared dividends quarterly.

	Truman	Atlanta
Revenues	(670,000)	(400,000)
Operating expenses	402,000	280,000
Income of subsidiary	(35,000)	-
Net income	(303,000)	(120,000)
Retained earnings, 1/1/15	(823,000)	(500,000)
Net income (above)	(303,000)	(120,000)
Dividends declared	145,000	80,000
Retained earnings, 12/31/15	(981,000)	(540,000)
Current assets	481,000	390,000
Atlanta investment	727,000	-
Land	388,000	200,000
Building	701,000	630,000
Total assets	2,297,000	1,220,000
Liabilities	(816,000)	(360,000)
Common stock	(95,000)	(300,000)
Addt'l paid-in capital	(405,000)	(20,000)
Retained earnings, 12/31/15	(981,000)	(540,000)
Total liabilites/owner's equity	(2,297,000)	(1,220,000)

Answer the following:

How did Truman allocate Atlantas acquisition-date fair value to the various assets acquired and liabilities assumed in the combination?

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 2015?

Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2015. At year-end, there were no intra-entity receivables or payables?