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 nancial records ofthe subsidiary. This patent is anticipated to have a remaining life offive 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 $ {511,435} $ (507,000) Operating expenses 474,000 325,000 Income of subsidiary [54,5651 0 Net income $ {392,000} $ (102,000) Retained earnings, lflfls $ {919,000} $ [502,000] Net income (above) (392,000) {152,000} Dividends declared 140,000 90,000 Retained earnings, 12f31110 ${1ll7lroo) 5 {5941000} Current assets $ 579,410 $ 421,000 Investment in Atlanta 779,590 0 Land 470,000 275,000 Buildings 745,000 666,000 Total assets 5 2:553:09\" 5 1:352:90\" Liabilities $ {912,000} $ (445,000) Common stock (95,000} (300,000) Additional paid-in capital (405,000) (20,000] Retained earnings, 12:31713 {1,171,000} {594,000} Total liabilities and stockholders' equity ${Z:553;D0} $[l,362,000] 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 comnanies as of December 31. 2018. At year-end. there Complete thle queson by enterlng your answers In the tabs below. How did Truman allocate Atlanta's acquisition-date fair value to the various assets acquired and liabilities assumed in the combination? s 755.525 0 324.225 0 $ 1330.750 (372,000) 9 Consideration transferred by Tmman Noncontrolling intert fair value Atlanta's acquisition-date total fair value Book value at Atlanta Fair value in excess of book value Excess fair value assigned: Patent Goodwill Required F5 > Howlr did Truman allocate I:he goodwill 'orn the acquisition across the controlling and nonoontrolling intere