On July 1, 2018, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $761,075 in cash and equity securities. The remaining 30 percent of Atlanta's shares traded closely near an average price that totaled $326,175 both before and after Truman's acquisition. In reviewing its acquisition, Truman assigned a $117,500 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 earnec uniformly throughout the year. The subsidiary declared dividends quarterly Truman Atlanta $ 757,375) 527,000) Revenues Operating expenses Income of subsidiary 472,000 376,000 44,625) $ (330,000 (151,000) $ (844,000) (533,000) (151,000) Net income Retained earnings, 1/1/18 Net income (above) Dividends declared (330,000) 145,000 60,000 $ (1,029,000) 624,000) Retained earnings, 12/31/18 Current assets Investment in Atlanta Land Buildings 407,300 357,000 784,700 452,000 267,000 773,000 15,000 $ 1,339,000 2,417,000 Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/18 $ (888,000) (395,000) (300,000) (20,000) (1,029,000)(624,000) 95,000) (405,000) Total liabilities and stockholders' equity $ (2,417,000) (1,339,000) 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. Required A Required BRequired 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 Noncontrolling interest fair value Atanta's acquisition-date total fair value S Book value of Atlanta Fair value in excess of book value Excess fair value assigned: Patent Goodwill Required A Required BRequired C Required D How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests? Controlling Noncontrolling Interest Interest Goodwill Required A Required BRequired CRequired D How did Truman derive the Investment in Atlanta account balance at the end of 2018? Initial value at acquisition date Truman's share of Atlanta's net income for half year Dividends 2018 Investment account balance 12/31/18 RUMAN COMPANY AND SUBSIDIARY ATLANTA COMPAN Consolidation Worksheet For Year Ending December 31, 2018 Truman Atlanta Consolidation Entries Noncontrolling Consolidated Company Company Debit Credit Interest Totals Revenues Operating expenses Net income of subsidiary Separate company net income Consolidated net income Net income attributable to NCI Net income attributable to Truman $ (757,375)$(527,000) 376,000 472,000 (44,625) S (330,000) 151,000) Retained earnings, 1/1 Net income Dividends declared Retained earnings 12/31 $ (844,000)(533,000) (151,000) 60,000 S (1,029,000) (624,000) (330,000) 145,000 Current assets Investment in Atlanta Land Buildings Patent Goodwill Total assets Liabilities Common stock Additional paid in capital Retained earnings 12/31 Noncontrolling interest 7/1 Noncontrolling interest 12/31 Total liabilites and equity S 407,300 357,000 784,700 452,000 773,000 267,000 715,000 S 2,417,000 1,339,000 S (888,000) (395,000) (300,000) (20,000) (624,000) (95,000) (405,000) (1,029,000) S (2,417,000)(1,339,000)S