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. 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 Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/21 Total liabilities and stockholders' equity Truman Atlanta $ (818,160) $ (458,000) 483,000 348,000 (28,840) 0 $ (364,000) $ (110,000) $ (847,000) $ (505,000) (364,000) (110,000) 175,000 50,000 $(1,036,000) $ (565,000) $ 425, 810 $ 392,000 771, 190 0 423,000 216,000 760,000 642,000 $ 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) Required Required Required Required A B 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. (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.) Show less TRUMAN COMPANY AND ATLANTA COMPANY Consolidation Worksheet For Year Ending December 31, 2021 Consolidation Truman Atlanta Entries Noncontrolling Consolidated Company Company Debit Credit Interest Totals $ $ Revenues (818,160) (458,000) Operating expenses 483,000 348,000 Net income of subsidiary (28,840) 0 $ $ Separate company net income (364,000) (110,000) Consolidated net income Net income attributable to NCI Net income attributable to Truman Retained earnings, 1/1/21 Net income Dividends declared $ (847,000) (364,000) 175,000 $ (1,036,000) $ (505,000) (110,000) 50,000 $ (565,000) Retained earnings, 12/31/21 Current assets Investment in Atlanta Land Buildings Patent Goodwill $ 425,810 $ 392,000 771,190 0 423,000 216,000 760,000 642,000 Total assets Liabilities $ $ 2,380,000 1,250,000 $ $ (844,000) (365,000) (95,000)| (300,000) (405,000) (20,000) (1,036,000) (565,000) 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) 0 $
