On July 1, 2021, 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.

In addition, the subsidiarys income was earned uniformly throughout the year. The subsidiary declared dividends quarterly.

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, 1/1/21 (871,000) (534,000)

Net income (above) (371,000) (193,000)

Dividends declared 150,000 50,000

Retained earnings, 12/31/21 (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, 12/31/21 (1,092,000) (677,000)

Total liabilities and stockholders' equity (2,505,000) (1,359,000)

What is the excess fair-value assigned to patent and goodwill?

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 2021?