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On July 1, 2021, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $789.250 in cash and equity securities.

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On July 1, 2021, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $789.250 in cash and equity securities. The remaining 30 percent of Atlanta's shares traded closely near an average price that totaled $338,250 both before and after Truman's acquisition In reviewing its acquisition, Truman assigned a $136,500 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. Atlanta $ (559,000) 367,080 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 $ (882,355) 477,080 K57,645) $ (383, 800) $ (848,800) (383,000) 155,000 $(1,076,000) $ 475,685 822,395 451,080 705,000 $ 2,454,000 $ (878,000) (95,000) (405,000) (1,076, 000) $(2,454,000) $ (192,000) $ (518,000) (192,080) 70.800 $ (640,000) $ 514,000 @ 213,000 636,000 $ 1,363,888 $ (483,080) [300,000) (20,000) (640,000) $(1,363,000) a. What is the excess foir-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

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