On July 1, 2018, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $720,000 in cash and equity securities The remaining 30 percent of Atlantas shares traded closely near an average price that totaled $290,000 both before and after Trumans acquisition In reviewing its acquisition, Truman assigned a $100,000 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 subsidiarys income was earned uniformly throughout the year The subsidiary declared dividends quarterly Truman Atlanta Revenues $ (670,000 ) $ (400,000 ) Operating expenses 402,000 280,000 Income of subsidiary (35,000 ) 0 Net income $ (303,000 ) $ (120,000 ) Retained earnings, 1 1 18 $ (823,000 ) $ (500,000 ) Net income (above) (303,000 ) (120,000 ) Dividends declared 145,000 80,000 Retained earnings, 12 31 18 $ (981,000 ) $ (540,000 ) Current assets $ 481,000 $ 390,000 Investment in Atlanta 727,000 0 Land 388,000 200,000 Buildings 701,000 630,000 Total assets $ 2,297,000 $ 1,220,000 Liabilities $ (816,000 ) $ (360,000 ) Common stock (95,000 ) (300,000 ) Additional paid in capital (405,000 ) (20,000 ) Retained earnings, 12 31 18 (981,000 ) (540,000 ) Total liabilities and stockholders' equity $ (2,297,000 ) $ (1,220,000 ) How did Truman allocate Atlantas acquisition date fair value to the various assets acquired and liabilities assumed in the combination How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests How did Truman derive the Investment in Atlanta account balance at the end of 2018 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

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On July 1, 2018, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $720,000 in cash and equity securities.

On July 1, 2018, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $720,000 in cash and equity securities. The remaining 30 percent of Atlantas shares traded closely near an average price that totaled $290,000 both before and after Trumans acquisition.

In reviewing its acquisition, Truman assigned a $100,000 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 subsidiarys income was earned uniformly throughout the year. The subsidiary declared dividends quarterly.

	Truman			Atlanta
Revenues	$	(670,000	)	$	(400,000	)
Operating expenses		402,000			280,000
Income of subsidiary		(35,000	)		0
Net income	$	(303,000	)	$	(120,000	)
Retained earnings, 1/1/18	$	(823,000	)	$	(500,000	)
Net income (above)		(303,000	)		(120,000	)
Dividends declared		145,000			80,000
Retained earnings, 12/31/18	$	(981,000	)	$	(540,000	)
Current assets	$	481,000		$	390,000
Investment in Atlanta		727,000			0
Land		388,000			200,000
Buildings		701,000			630,000
Total assets	$	2,297,000		$	1,220,000
Liabilities	$	(816,000	)	$	(360,000	)
Common stock		(95,000	)		(300,000	)
Additional paid-in capital		(405,000	)		(20,000	)
Retained earnings, 12/31/18		(981,000	)		(540,000	)
Total liabilities and stockholders' equity	$	(2,297,000	)	$	(1,220,000	)

How did Truman allocate Atlantas acquisition-date fair value to the various assets acquired and liabilities assumed in the combination?

How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests?

How did Truman derive the Investment in Atlanta account balance at the end of 2018?

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.