On July 1, 2021, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $756,525 in cash and equity securities. The remaining 30 percent of Atlanta's shares traded closely near an average price that totaled $324,225 both before and after Truman's acquisition In reviewing its acquisition, Truman assigned a $130,500 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 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 asset Liabilities Truman $ (811,435) 474,000 (54,565) $ (392,000) $ (919,000) (392,000) 140.000 $(1,171,000) S 579, 410 779,590 478,000 746,000 $ 2,583,000 $ (912,000) Atlanta $ (507,000) 325,000 0 $ (182,000) $ (502,000) (182,000) 90,000 $ (594,000) $ 421,000 0 275,000 666,000 $ 1,362,000 (440,000) On July 1, 2021, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $756,525 in cash and equity securities. The remaining 30 percent of Atlanta's shares traded closely near an average price that totaled $324,225 both before and after Truman's acquisition In reviewing its acquisition, Truman assigned a $130,500 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 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 asset Liabilities Truman $ (811,435) 474,000 (54,565) $ (392,000) $ (919,000) (392,000) 140.000 $(1,171,000) S 579, 410 779,590 478,000 746,000 $ 2,583,000 $ (912,000) Atlanta $ (507,000) 325,000 0 $ (182,000) $ (502,000) (182,000) 90,000 $ (594,000) $ 421,000 0 275,000 666,000 $ 1,362,000 (440,000) Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/21 Total liabilities and stockholders' equity (912,000) (95,000) (405,000) (1,171,000) $(2,583,000) $ (448,000) (300,000) (20,000) (594,000) $(1,362,000) 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. Complete this question by entering your answers in the tabs below. Required A Required B Required 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 Goodwill Interest Complete this question by entering your answers in the tabs below. Required A Required B Required 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 TRUMAN COMPANY AND ATLANTA COMPANY Consolidation Worksheet For Year Ending December 31, 2021 Truman Atlanta Consolidation Entries Company Company Debit Credit $ (811.435) $ (507.000) 474,000 325,000 (54,565) 0 $ (392,000) $ (182,000) 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 Retained earings, 1/1/21 Not Income Dividends declared Retained earings, 12/31/21 $ (910,000) $ (502,000) (392.000) (182.000) 140,000 90,000 $ (1,171,000) 5 (594.000) $ Current assets Investment in Atlanta 579,410 S 779,500 421.000 0 470 000 275.000 LIVIU Uudieu JUUUU 190, Vuu $ (1,171,000) $ Retained earnings, 12/31/21 (594,000) $ 421,000 0 Current assets Investment in Atlanta Land Buildings Patent Goodwill 579,410 779,590 478,000 746,000 275,000 666,000 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 $ 2,583,000 $1,362,000 $ (912,000) $ (448,000) (95,000) (300,000) (405,000) (20,000) (1,171,000) (594,000) 0 $ (2,583,000) $ (1,362,000) $ 0 $ 0