On July 1, 2018, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $791,875 in cash and equity securities. The remaining 30 percent of Atlantas shares traded closely near an average price that totaled $339,375 both before and after Trumans acquisition.

In reviewing its acquisition, Truman assigned a $124,500 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 subsidiarys income was earned uniformly throughout the year. The subsidiary declared dividends quarterly.

	Truman				Atlanta
Revenues	$	(780,165	)		$	(491,000	)
Operating expenses		468,000				298,000
Income of subsidiary		(58,835	)			0
Net income	$	(371,000	)		$	(193,000	)
Retained earnings, 1/1/18	$	(871,000	)		$	(534,000	)
Net income (above)		(371,000	)			(193,000	)
Dividends declared		150,000				50,000
Retained earnings, 12/31/18	$	(1,092,000	)		$	(677,000	)
Current assets	$	465,790			$	448,000
Investment in Atlanta		833,210				0
Land		458,000				237,000
Buildings		748,000				674,000
Total assets	$	2,505,000			$	1,359,000
Liabilities	$	(913,000	)		$	(362,000	)
Common stock		(95,000	)			(300,000	)
Additional paid-in capital		(405,000	)			(20,000	)
Retained earnings, 12/31/18		(1,092,000	)			(677,000	)
Total liabilities and stockholders' equity	$	(2,505,000	)		$	(1,359,000	)

How did Truman allocate Atlanta's acquisition-date fair value to the various assets acquired and liabilities assumed in the combination? Consideration transfered by Truman 791,875 339,375 $1,131,250 Noncontrolling interest fair value Atlanta's acquisition-date total fair value f Atlanta 977,000 Book value 154,250 Fair value in excess of book value Excess fair value assigned: (24,900) x Patent Goodwill 129.350 How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests? Noncontrolling Controlling Interest Interest Goodwill How did Truman derive the Investment in Atlanta account balance at the end of 2018? $ Initial value at acquisition date 791,875 Truman's share of Atlanta's net income for half year 60,550x Dividends 2018 17,500 834 925 Investment account balance 12/31/18 TRUMAN COMPANY AND SUBSIDIARY ATLANTA COMPANY Consolidation Worksheet For Year Ending December 31, 2018 Atlanta Consolidation Entries Noncontrolling Truman Consolidated Credit Company Company Debit Interest Totals $ (491,000) (1,271,165) Revenues (780,165) Operating expenses 468,000 298,000 766,000 Net income of subsidiary 58.835) $ 371,000) S (193.0007 Separate company net income Consolidated net income (505,165) Net income attributable to NCI come attributable to (505,165) Truman Retained earnings, 1/1 871,000) (534.000) (871,000) 371.000) (193,000) Net income 371,000) DMidends declared 150 000 50.000 150,000 (1,092.000) $(1,092,000) S (677,000) Retained earnings 12/31 448.000 Current assets 465,790 913,790 Investment in Atlanta 833.210 Land 458.000 237.000 695,000 Buildings 748,000 674.000 1,422,000 Patent Goodwill 3,030,790 Total assets S 1,359,000 2,505,000 (1,275,000) s 362.000) 13,000 Liabilities Common stock (95,000) (300.000) (95,000) (405.000) Additional paid in capital (20.000) (405,000) (677.000) (1,092,000) Retained earnings 12/31 (1,092,000) Noncontrolling interest 7/1 Noncontrolling interest 12/31 Total liabilities and equity S(1,359,000) 12505.000) 0 (2,867,000)