On July 1, 2018, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $829,500 in cash and equity securities. The remaining 30 percent of Atlanta's shares traded closely near an average price that totaled 355,500 both before and after Truman's acquisition. In reviewing its acquisition, Truman assigned a $127,500 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 2018. In addition, the subsidiary's income was earned uniformly throughout the year. The subsidiary declared dividends quarterly Atlanta Revenues Operating expenses Income of subsidiary 739,075)479,000 308,000 403,000 50,925 Net income (387,000) (171,000) Retained earnings, 1/1/18 $(915,000)(589,000) (171,000) 150,00060,000_ (1,152,000) (700,000) Net income (above) Dividends declared (387,000) Retained earnings, 12/31/18 Current assets Investment in Atlanta Land Buildings $514,575 $402,000 859,425 444,000 715. 000 225, 000 713. 000 $ 1,340,000 Total assets Liabilities Common stock Additional paid-in Retained earnings, 12/31/1B $ (881,000) (320,000) 300,000) (20,000) 95,000) (405,000) 152. 000 capital -111 (00.000 Total liabilities and stockholders equity $ (2,533,000) 1,340,000) a. How did Truman allocate Atlanta's acquisition-date fair value to the various assets acquired and liabilities assumed in the combination? b. How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests? c. How did Truman derive the Investment in Atlanta account balance at the end of 2018? d. Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2018. At year-end, there were no intra-entity receivables or payables. Complete this question by entering your answers in the tabs below. Required ARequired B Required CRequired D How did Truman allocate Atlanta's acquisition-date fair value to the various assets acquired and liabilities assumed in the combination? Consideration transferred by Truman Noncontrolling interest fair value Atlanta's acquisition-date total fair value Book value of Atlanta Fair value in excess of book value Excess fair value assigned: (1,020,000) S (1,020,000) Patent Goodwill S (1,020,000) Complete this question by entering your answers in Required ARequired BRequired CRequired D How did Truman allocate the goodwill from the acquisition a Controlling Noncontrolling Interest Interest Goodwill Required A Required Required CRequired D How did Truman derive the Investment in Atlanta account balance Initial value at acquisition date Truman's share of Atlanta's net income for half year Dividends 2018 Investment account balance 12/31/18 Required A Required Required CRequired D Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2018. At year-end, t entity receivables or payables. (For accounts where multiple consolidation entries are required, combine all debit entries into this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amoun of the worksheet. Amounts in the Debit and Credit columns should be entered as positive. Negative amounts for the Noncont Consolidated Totals columns should be entered with a minus sign.) UMAN COMPANY AND SUBSIDIARY ATLANTA COMPA Consolidation Worksheet For Year Ending December 31, 2018 Truman Atlanta Consolidation Entries Noncontrolling Co nsolidated Totals Compa Compa Debit Credit Interest S (739,075) (479,000) 308,000 Operating expenses Net income of subsidiary Separate company net income Consolidated net income Net income attributable to NCI Net income attributable to Truman 403.000 (50,925) S (387,000) (171,000) Retained earnings, 1 Net income Dividends declared Retained S (915,000) (589,000) (171,000) 60.000 S (1,152,000) (700,000) (387,000) 150,000 earnings 12/31 Current assets Investment in Atlanta Land Buildings Patent Goodwil Total assets Liabilities Common stock Additional paid in capital Retained S 514,575 S 402,000 859.425 444.000 715,000 225,000 713,000 S 2.533,000 1340.000 S (881,000) (320,000) (300,000) (20,000 (700,000) (95,000) (405,000) (1,152,000) earnings 12/31 interest 7/1 Noncontrolling interest 12/31 Total liabilities and equity S (2,533,000)S 1,340,000)S