On July 1, 2015, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $835,275 in cash and equity securities. The remaining 30 percent of Atlantas shares traded closely near an average price that totaled $357,975 both before and after Trumans acquisition.

In reviewing its acquisition, Truman assigned a $140,000 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. Subsidiary dividend payments were made quarterly.

	Truman	Atlanta
Revenues	$	(762,300	)	$	(522,000	)
Operating expenses		494,000			332,000
Income of subsidiary		(56,700	)
Net income	$	(325,000	)	$	(190,000	)
Retained earnings, 1/1/15	$	(853,000	)	$	(587,000	)
Net income (above)		(325,000	)		(190,000	)
Dividends declared		160,000			70,000
Retained earnings, 12/31/15	$	(1,018,000	)	$	(707,000	)
Current assets	$	305,525		$	453,000
Investment in Atlanta		867,475
Land		456,000			276,000
Buildings		796,000			702,000
Total assets	$	2,425,000		$	1,431,000
Liabilities	$	(907,000	)	$	(404,000	)
Common stock		(95,000	)		(300,000	)
Additional paid-in capital		(405,000	)		(20,000	)
Retained earnings, 12/31/15		(1,018,000	)		(707,000	)
Total liabilities and stockholders' equity	$	(2,425,000	)	$	(1,431,000	)

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