On July 1, 2018, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $772,275 in cash and equity securities. The remaining 30 percent of Atlanta's shares traded closely near an average price that totaled $330,975 both before and after Truman's acquisition. In reviewing its acquisition, Truman assigned a $132,000 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 Operating expenses Income of subsidiary $ (801,490) 429,000) 304,000 454,000 34,510) $ (382,000) 125,000) $(900,000)(537,000) (125,000) Net income Retained earnings, 1/1/18 Net income (above) Dividends declared (382,000) 175,000 80,000 $ (1,107,000) (582,000) $375,000 tained earnings, 12/31/18 Re Current assets Investment in Atlanta Land Buildings $ 563,215 778,785 460,000 719,000 242,000 698000 1,313,000 2,521,000 Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/18 $ (914,000 (411,000) (300,000) (20,000) (95,000) (405,000) (1,107,000) (582,000 (2,521,000) (1,313,000) Total liabilities and stockholders' equity On July 1, 2018, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $772,275 in cash and equity securities. The remaining 30 percent of Atlanta's shares traded closely near an average price that totaled $330,975 both before and after Truman's acquisition. In reviewing its acquisition, Truman assigned a $132,000 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 Operating expenses Income of subsidiary $ (801,490) 429,000) 304,000 454,000 34,510) $ (382,000) 125,000) $(900,000)(537,000) (125,000) Net income Retained earnings, 1/1/18 Net income (above) Dividends declared (382,000) 175,000 80,000 $ (1,107,000) (582,000) $375,000 tained earnings, 12/31/18 Re Current assets Investment in Atlanta Land Buildings $ 563,215 778,785 460,000 719,000 242,000 698000 1,313,000 2,521,000 Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/18 $ (914,000 (411,000) (300,000) (20,000) (95,000) (405,000) (1,107,000) (582,000 (2,521,000) (1,313,000) Total liabilities and stockholders' equity