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 Atlantas shares traded closely near an average price that totaled $325,650 both before and after Trumans 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 subsidiarys income was earned uniformly throughout the year. The subsidiary declared dividends quarterly. Truman Atlanta Revenues $ (818,160 ) $ (458,000 ) Operating expenses 483,000 348,000 Income of subsidiary (28,840 ) 0 Net income $ (364,000 ) $ (110,000 ) Retained earnings, 1/1/21 $ (847,000 ) $ (505,000 ) Net income (above) (364,000 ) (110,000 ) Dividends declared 175,000 50,000 Retained earnings, 12/31/21 $ (1,036,000 ) $ (565,000 ) Current assets $ 425,810 $ 392,000 Investment in Atlanta 771,190 0 Land 423,000 216,000 Buildings 760,000 642,000 Total assets $ 2,380,000 $ 1,250,000 Liabilities $ (844,000 ) $ (365,000 ) Common stock (95,000 ) (300,000 ) Additional paid-in capital (405,000 ) (20,000 ) Retained earnings, 12/31/21 (1,036,000 ) (565,000 ) Total liabilities and stockholders' equity $ (2,380,000 ) $ (1,250,000 )

1. 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.

Noncontrolling Consolidated 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 For Year Ending December 31, 2021 Truman Atlanta Consolidation Entries Company Company Debit Credit $ (818,160) $ (458,000) 483,000 348,000 (28,840) 0 $ (364,000) $ (110,000) Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 $ (847,000) $ (364,000) 175,000 $ (1,036,000) $ (505,000) (110,000) 50,000 (565,000) $ 425,810 $ 771,190 423,000 760,000 392,000 0 216,000 642,000 $ Current assets Investment in Atlanta Land Buildings Patent Goodwill Total assets Liabilities Common stock Additional paid in capital Retained earnings, 12/31/21 Noncontrolling interest 7/1 Noncontrolling interest 12/31 Total liabilities and stockholders' equity $ 2,380,000 $ 1,250,000 (844,000) $ (365,000) (95,000) (300,000) (405,000) (20,000) (1,036,000) (565,000) $ (2,380,000) $ (1,250,000) $ 0 $ 0