On July 1, 2021, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $772,275 in cash and equity securities. The remaining 30 percent of Atlantas shares traded closely near an average price that totaled $330,975 both before and after Trumans acquisition.

In reviewing its acquisition, Truman assigned a $132,000 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	$	(801,490	)		$	(429,000	)
Operating expenses		454,000				304,000
Income of subsidiary		(34,510	)			0
Net income	$	(382,000	)		$	(125,000	)
Retained earnings, 1/1/21	$	(900,000	)		$	(537,000	)
Net income (above)		(382,000	)			(125,000	)
Dividends declared		175,000				80,000
Retained earnings, 12/31/21	$	(1,107,000	)		$	(582,000	)
Current assets	$	563,215			$	375,000
Investment in Atlanta		778,785				0
Land		460,000				242,000
Buildings		719,000				696,000
Total assets	$	2,521,000			$	1,313,000
Liabilities	$	(914,000	)		$	(411,000	)
Common stock		(95,000	)			(300,000	)
Additional paid-in capital		(405,000	)			(20,000	)
Retained earnings, 12/31/21		(1,107,000	)			(582,000	)
Total liabilities and stockholders' equity	$	(2,521,000	)		$	(1,313,000	)

1. What is the excess fair-value assigned to patent and goodwill?

2. How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests?

3. How did Truman derive the Investment in Atlanta account balance at the end of 2021?

4. 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 C Required D What is the excess fair-value assigned to patent and goodwill? Patent $ 132,000 95,650 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 Interest Goodwill 66,955 X $ 469,995 $ Prepare a worichest to consolidate the financial statements of these two companies as of December 31, 2021. At year-end, there were no intra-entity receivables ar payables. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debt 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 Truman Adianta Concoildation Entries Company Company Debit Credit $ (801.490) Is (429,000) 454.000 304.000 34.510) $ (382.000) Is (125.000 Nonoontrolling Interest Consolidated Total Ravenues Operating experies Not Income of subsidiary Separate company net income Consolidated net income Not income attributable to NCI Not income attributable to Truman Retained Gamings, 1/1/21 Not Income DMdonds declared Retained Gamings, 12/31/21 $ 900,000 (382.000 175.000 IS 11.107.000 $ (537.000 (125.000) 80.000 $ (582 000) IS s 375.000 563.215 778.75 450.000 242.000 Currants Investment in Manta Land Buildings Patent Goodwl 719.000 60.000 Toasts Labies Common stock Additional paid in capta Retained comings, 12/31.21 Non controlling interest 711 No controlling interest 12/31 Total liabilities and stockholders equity $ 2,521,000 S 914,000 195.000 (405,000 11.107.000 $ 1,313.000 $ (411,000) (300,000) (20.000) (582 000) P2.521.000 1.0 Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D What is the excess fair-value assigned to patent and goodwill? Patent $ 132,000 95,650 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 Interest Goodwill 66,955 X $ 469,995 $ Prepare a worichest to consolidate the financial statements of these two companies as of December 31, 2021. At year-end, there were no intra-entity receivables ar payables. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debt 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 Truman Adianta Concoildation Entries Company Company Debit Credit $ (801.490) Is (429,000) 454.000 304.000 34.510) $ (382.000) Is (125.000 Nonoontrolling Interest Consolidated Total Ravenues Operating experies Not Income of subsidiary Separate company net income Consolidated net income Not income attributable to NCI Not income attributable to Truman Retained Gamings, 1/1/21 Not Income DMdonds declared Retained Gamings, 12/31/21 $ 900,000 (382.000 175.000 IS 11.107.000 $ (537.000 (125.000) 80.000 $ (582 000) IS s 375.000 563.215 778.75 450.000 242.000 Currants Investment in Manta Land Buildings Patent Goodwl 719.000 60.000 Toasts Labies Common stock Additional paid in capta Retained comings, 12/31.21 Non controlling interest 711 No controlling interest 12/31 Total liabilities and stockholders equity $ 2,521,000 S 914,000 195.000 (405,000 11.107.000 $ 1,313.000 $ (411,000) (300,000) (20.000) (582 000) P2.521.000 1.0