On July 1, 2021, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $759,850 in cash and equity securities. The remaining 30 percent of Atlanta's shares traded closely near an average price that totaled $325,650 both before and after Truman's acquisition. In reviewing its acquisition, Truman assigned a $138,000 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 2021. In addition, the subsidiary's income was earned uniformly throughout the year. The subsidiary declared dividends quarterly. Truman Atlanta $ (818,160) $ (458,000) Revenues Operating expenses Income of subsidiary Net income Retained earnings, 1/1/21 Net income (above) Dividends declared Retained earnings, 12/31/21 Current assets Investment in Atlanta Land Buildings 483,000 (28,840) 348,000 B $ (364,000) $ (110,000) $ (847,000) $ (505,000) (110,000) (364,000) 175,000 $ (1,036,000) 50,000 $ (565,000) $ 425,810 $ 392,000 771,190 423,000 760,000 216,000 642,000 $ 2,380,000 $ 1,250,000 $ (844,000) $ (365,000) (95,000) Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/21 (485,000) (1,036,000) (300,000) (20,000) (565,000) Total liabilities and stockholders' equity $ (2,380,000) $ (1,250,000) a. What is the excess fair-value assigned to patent and goodwill? 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 2021? d. Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2021. At year-end, there were no intra-entity receivables or payables. a. What is the excess fair-value assigned to patent and goodwill? 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 2021? d. Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2021. At year-end, there were no intra-entity receivables or payables. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D What is the excess fair-value assigned to patent and goodwill? Patent Goodwill Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests? Controlling Noncontrolling Interest Interest Goodwill Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D How did Truman derive the Investment in Atlanta account balance at the end of 2021? Initial value at acquisition date Equity in earnings of Atlanta Dividends 2021 Investment account balance 12/31/21 $ 0 4 Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2021. At year-end, there were no intra-entity receivables or payables. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Input all amounts as positive values.) TRUMAN COMPANY AND ATLANTA COMPANY Consolidation Worksheet For Year Ending December 31, 2021 Truman Company Atlanta Company Revenues Operating expenses Net income of subsidiary Separate company net income Consolidated net income Net income attributable to NCI Net income attributable to Truman Retained earnings, 1/1/21 Net income Dividends declared S (818,160) $ (458,000) 483,000 (28,840) 348,000 0 $ (364,000) $ (110,000) $ (847,000) $ (364,000) (505,000) (110,000) 175,000 50,000 Retained eamings, 12/31/21 Cument assets Investment in Atlanta Land Buildings $ (1,036,000) 5 (565,000) $ 425,810 $ 392,000 771,190 0 423,000 216,000 760,000 642,000 Patent Goodwi Total assets Liabildes $ 2,380,000 $ 1,250,000 S (844,000) $ (365,000) Consolidation Entries Noncontrolling Consolidated Debit Credit Interest Totals Show less & Consolidated net income Net income attributable to NCI Net income attributable to Truman Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Current assets Investment in Atlanta (364,000) $ (847,000) $ (505,000) (110,000) 50,000 175,000 $ (1,036,000) $ (565,000) $ 425,810 $ 392,000 Land Buildings Patent Goodwill Total assets Liabilities Common stock Additional paid in capital Retained eamings, 12/31/21 Noncontrolling interest 7/1 Noncontrolling interest 12/31 Total liabilities and stockholders' equity 771,190 0 423,000 216,000 760,000 642,000 $ 2,380,000 $ 1,250,000 S (844,000) $ (365,000) (95,000) (300,000) (405,000) (20,000) (1,036,000) (565,000) $ (2,380,000) $ (1,250,000) $ $ 0