On July 1, 2018, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $756,525 in cash and equity securities. The remaining 30 percent of Atlanta's shares traded closely near an average price that totaled $324,225 both before and after Truman's acquisition. In reviewing its acquisition, Truman assigned a $130,500 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. Revenues Operating expenses Income of subsidiary Net income Retained earnings, 1/1/18 Net income (above) Dividends declared Retained earnings, 12/31/18 Current assets Investment in Atlanta Land Buildings Total assets Truman Atlanta $ (811,435) $ (507,000) 474,000 (54,565) 325,000 0 $ (392,000) $ (182,000) $ (919,000) $ (502,000) (392,000) (182,000) 140,000 $ (1,171,000) $ 90,000 (594,000) $ 579,410 $ 421,000 779,590 0 478,000 746,000 275,000 666,000 $ 2,583,000 $ 1,362,000 Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/18 Total liabilities and stockholders' equity $ (912,000) $ (448,000) (95,000) (405,000) (1,171,000) (300,000) (20,000) (594,000) $(2,583,000) $ (1,362,000) 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. TRUMAN COMPANY AND SUBSIDIARY ATLANTA COMPANY Consolidation Worksheet For Year Ending December 31, 2018 Truman Atlanta Company Company Debit Consolidation Entries Credit Noncontrolling Consolidated Interest Totals Revenues Operating expenses $ (811,435) $ (507,000) 474,000 325,000 Net income of subsidiary (54,565) Separate company net income Consolidated net income $ (392,000) $ (182,000) $ 0 Net income attributable to NCI Net income attributable to Truman $ 0 Retained earnings, 1/1 Net income Dividends declared $ (919,000) $ (502,000) (392,000) 140,000 (182,000) 90,000 Retained earnings 12/31 $ (1,171,000) $ (594,000) $ 0 Current assets $ 579,410 $ 421,000 Investment in Atlanta 779,590 Land 478,000 275,000 Buildings 746,000 666,000 Patent Goodwill Total assets Liabilities Common stock Additional paid in capital Retained earnings 12/31 Noncontrolling interest 7/1 Noncontrolling interest 12/31 $ 2,583,000 $ 1,362,000 $ 0 $ (912,000) $ (448,000) (95,000) (405,000) (300,000) (20,000) (1,171,000) (594,000) Show less