On July 1, 2018, 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 Atlanta's shares traded closely near an average price that totaled $357,975 both before and after Truman's 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 2018. In addition, the subsidiary's income was earned uniformly throughout the year. The subsidiary declared dividends quarterly. Truman Atlanta Revenues (762 , 300) $ (522, 000) Operating expenses $ 494, 000 332, 090 Income of subsidiary (56,700 Net income (325, 000) (190, 090) Retained earnings, 1/1/18 853, 000) (325, 000) (587, 000) Net income (above (190, 000) Dividends declared 160, 090 70, 000 Retained earnings, 12/31/18 $ (1, 018, 000) $ (707,000) Current assets Investment in Atlanta 305, 525 867,475 453, 000 Land 456, 000 276, 000 Buildings 796, 000 702, 090 Total assets $ 2, 425, 000 $ 1, 431, 000 Liabilities (907, 090) Common stock (95, 000) (404, 000) 300, 000) Additional paid-in capital 405, 900 (20, 000) Retained earnings, 12/31/18 (1, 018, 000) (707, 000) Total liabilities and stockholders' equity $(2, 425, 000) $(1, 431, 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. * Answer Is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required 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 $ 835,275 Noncontrolling interest fair value 357,975 Atlanta's acquisition-date total fair value $ 1,193,250 Book value of Atlanta 967,000 Fair value in excess of book value $ 226,250 Excess fair value assigned: Patent 140,000 Goodwill $ 86,250