On July 1, 2021, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $720,000 in cash and equity securities. The remaining 30 percent of Atlanta's shares traded closely near an average price that totaled $290,000 both before and after Truman's acquisition In reviewing its acquisition, Truman assigned a $100,000 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 $ (670,000) 402,000 (35,000 $ (303,000) $ (823,000) (303, 000) 145,000 $ (981,000) $ 481,000 727,000 388,000 701,000 $ 2, 297,000 $ (816,000) (95,000) (405,000) (981, 000) $ (2,297,000 Atlanta $ (400,000) 280,000 @ $ (120,000) $ (500,000) (120,000) 80,000 S $ (540,000) $ 390,000 0 200,000 30,000 $ 1,220,000 $ (360,000) (300,000) (20,000) (540,000) $ (1,220,000) a. How did Truman allocate Atlanta's acquisition-date fair value to the various assets acquired and liabilities assumed in the combination? 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 c Required D How did Truman allocate Atlanta's acquisition-date fair value to the various assets acquired and liabilities assumed in the combination? Patent Goodwill Requined Required B > a. How did Truman allocate Atlanta's acquisition date fair value to the various assets acquired and liabilities assumed in the combination? 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 C Required D How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests? Controlling Non controlling Interest Interest Goodwill a. How did Truman allocate Atlanta's acquisition-date fair value to the various assets acquired and liabilities assumed in the combination? 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. 25 Required D Required A Required B Required 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 Required A Required B Required c Required 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 Nontoh Condotton Intonas Revenues Operating expenses Net income of subsidiary Separate company net income Consolidated net income Net income attributable to NCI Net income attributable to Truman aconsolation alors Com Campeny Ereda $ (670,000) $ (400,000) 402,000 280,000 (35,000) 0 s (303,000 $ (120,000) S Retained earnings, 1/1/21 Net income Dividends declared Retained earings, 12/31/21 (823,000) s (303,000) 145,000 (981,000) s (500,000) (120,000) 80,000 (540,000) $ Net income attributable to NCI Net income attributable to Truman $ Retained earings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 (823,000) $ (303,000) 145,000 (981,000) $ (500,000) (120,000) 80,000 (540,000) $ $ 390,000 0 Current assets Investment in Atlanta Land Buildings Patent 481,000 $ 727,000 388,000 701,000 200,000 630,000 $ $ $ $ Goodwill Total assets Liabilities Common stock Additional paid in capital Retained earings, 12/31/21 Honcontrolling interest 7/1 Foncontrolling interest 12/31 otal liabilities and stockholders' equity 2,297,000 (816,000) (95,000 (405,000) (981,000) 1,220,000 (360,000) (300,000) (20,000) (540,000) $ (2,297,000) $ (1,220,000)