On July 1, 2015, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $764,050 in cash and equity securities. The remaining 30 percent of Atlantas shares traded closely near an average price that totaled $327,450 both before and after Trumans acquisition.

In reviewing its acquisition, Truman assigned a $108,000 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	$	693,510		$	445,000
Income of subsidiary		35,490
Operating expenses		(421,000	)		(322,000	)
Net income	$	308,000		$	123,000
Retained earnings, 1/1/15	$	849,000		$	567,000
Net income		308,000			123,000
Dividends declared		(160,000	)		(90,000	)
Retained earnings, 12/31/15	$	997,000		$	600,000
Current assets	$	411,960		$	408,000
Investment in Atlanta		768,040
Land		470,000			246,000
Buildings		726,000			633,000
Total assets	$	2,376,000		$	1,287,000
Liabilities	$	879,000		$	367,000
Common stock		95,000			300,000
Additional paid-in capital		405,000			20,000
Retained earnings		997,000			600,000
Total liabilities and stockholders' equity	$	2,376,000		$	1,287,000

a.	How did Truman allocate Atlantas acquisition-date fair value on 7/1/15 to the various assets acquired and liabilities assumed in the combination?

b.	How did Truman allocate the goodwill from the acquisition on 7/1/15 across the controlling and noncontrolling interests?

c.	How did Truman derive the Investment in Atlanta account balance at the end of 2015?

d.	Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2015. (Do not leave any cells blank. Enter only positive number in the Consolidation Worksheet Adjustments debit and credit columns for the controlling interest and zeros in cells where appropriate. Credit amounts should be preceded by an minus sign in the NCI column.)