On July 1, 2021, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $809,550 in cash and equity securities. The remaining 30 percent of Atlantas shares traded closely near an average price that totaled $346,950 both before and after Trumans acquisition.

In reviewing its acquisition, Truman assigned a $126,000 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	$	(725,470	)		$	(476,000	)
Operating expenses		414,000				315,000
Income of subsidiary		(47,530	)			0
Net income	$	(359,000	)		$	(161,000	)
Retained earnings, 1/1/21	$	(916,000	)		$	(568,000	)
Net income (above)		(359,000	)			(161,000	)
Dividends declared		140,000				70,000
Retained earnings, 12/31/21	$	(1,135,000	)		$	(659,000	)
Current assets	$	515,420			$	338,000
Investment in Atlanta		832,580				0
Land		397,000				294,000
Buildings		755,000				662,000
Total assets	$	2,500,000			$	1,294,000
Liabilities	$	(865,000	)		$	(315,000	)
Common stock		(95,000	)			(300,000	)
Additional paid-in capital		(405,000	)			(20,000	)
Retained earnings, 12/31/21		(1,135,000	)			(659,000	)
Total liabilities and stockholders' equity	$	(2,500,000	)		$	(1,294,000	)

1. 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.