On July 1, 2021, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $767,200 in cash and equity securities. The remaining 30 percent of Atlantas shares traded closely near an average price that totaled $328,800 both before and after Trumans acquisition.

In reviewing its acquisition, Truman assigned a $138,500 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 2021. In addition, the subsidiarys income was earned uniformly throughout the year. The subsidiary declared dividends quarterly.

	Truman				Atlanta
Revenues	$	(761,695	)		$	(497,000	)
Operating expenses		489,000				357,000
Income of subsidiary		(39,305	)			0
Net income	$	(312,000	)		$	(140,000	)
Retained earnings, 1/1/21	$	(883,000	)		$	(516,000	)
Net income (above)		(312,000	)			(140,000	)
Dividends declared		140,000				70,000
Retained earnings, 12/31/21	$	(1,055,000	)		$	(586,000	)
Current assets	$	484,995			$	433,000
Investment in Atlanta		782,005				0
Land		431,000				233,000
Buildings		749,000				659,000
Total assets	$	2,447,000			$	1,325,000
Liabilities	$	(892,000	)		$	(419,000	)
Common stock		(95,000	)			(300,000	)
Additional paid-in capital		(405,000	)			(20,000	)
Retained earnings, 12/31/21		(1,055,000	)			(586,000	)
Total liabilities and stockholders' equity	$	(2,447,000	)		$	(1,325,000	)

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.