Problem 4 37 (Algo) (LO 4 2, 4 3, 4 6, 4 7, 4 8) On July 1, 2024, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $801,900 in cash and equity securities The remaining 30 percent of Atlantas shares traded closely near an average price that totaled $325,100 both before and after Trumans acquisition In reviewing its acquisition, Truman assigned a $129,500 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 2024 In addition, the subsidiarys income was earned uniformly throughout the year The subsidiary declared dividends quarterly Items Truman Atlanta Revenues $ (785,065) $ (533,000) Operating expenses 486,000 333,000 Income of subsidiary (60,935) 0 Net income $ (360,000) $ (200,000) Retained earnings, 1 1 24 $ (911,000) $ (535,000) Net income (above) (360,000) (200,000) Dividends declared 170,000 70,000 Retained earnings, 12 31 24 $ (1,101,000) $ (665,000) Current assets $ 379,665 $ 415,000 Investment in Atlanta 838,335 0 Land 435,000 283,000 Buildings 775,000 697,000 Total assets $ 2,428,000 $ 1,395,000 Liabilities $ (827,000) $ (410,000) Common stock (95,000) (300,000) Additional paid in capital (405,000) (20,000) Retained earnings, 12 31 24 (1,101,000) (665,000) Total liabilities and stockholders' equity $ (2,428,000) $ (1,395,000) Required How did Truman allocate Atlantas acquisition date fair value to the various assets acquired and liabilities assumed in the combination How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests How did Truman derive the Investment in Atlanta account balance at the end of 2024 Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2024 At year end, there were no intra entity receivables or payables Please Solve required D How did Truman derive the Investment in Atlanta account balance at the end of 2024 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 2024 d Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2024 At year end, there were no intra entity receivables or payables How did Truman allocate Atlanta's acquisition date fair value to the various assets acquired and liabilities assumed in the combination Prepare a worksheet to consolidate the financial statements of these two companies as of December 31,2024 At year end, there were no intra entity receivables or payables Note 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 On July 1, 2024, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $801,900 in cash and equity securities The remaining 30 percent of Atlanta's shares traded closely near an average price that totaled $325,100 both before and after Truman's acquisition In reviewing its acquisition, Truman assigned a $129,500 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 2024 In addition, the subsidiary's income was earned uniformly throughout the year The subsidiary declared dividends quarterly Required 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 2024 d Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2024 At year end, there were no intra entity receivables or payables How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests

Question

Problem 4 37 (Algo) (LO 4 2, 4 3, 4 6, 4 7, 4 8) On July 1, 2024, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $801,900 in cash and equity securities  The remaining 30 percent of Atlantas shares traded closely near an average price that totaled $325,100 both before and after Trumans acquisition  In reviewing its acquisition, Truman assigned a $129,500 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 2024  In addition, the subsidiarys income was earned uniformly throughout the year  The subsidiary declared dividends quarterly  Items Truman Atlanta Revenues $ (785,065) $ (533,000) Operating expenses 486,000 333,000 Income of subsidiary (60,935) 0 Net income $ (360,000) $ (200,000) Retained earnings, 1 1 24 $ (911,000) $ (535,000) Net income (above) (360,000) (200,000) Dividends declared 170,000 70,000 Retained earnings, 12 31 24 $ (1,101,000) $ (665,000) Current assets $ 379,665 $ 415,000 Investment in Atlanta 838,335 0 Land 435,000 283,000 Buildings 775,000 697,000 Total assets $ 2,428,000 $ 1,395,000 Liabilities $ (827,000) $ (410,000) Common stock (95,000) (300,000) Additional paid in capital (405,000) (20,000) Retained earnings, 12 31 24 (1,101,000) (665,000) Total liabilities and stockholders' equity $ (2,428,000) $ (1,395,000) Required  How did Truman allocate Atlantas acquisition date fair value to the various assets acquired and liabilities assumed in the combination  How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests  How did Truman derive the Investment in Atlanta account balance at the end of 2024  Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2024  At year end, there were no intra entity receivables or payables  Please Solve required D How did Truman derive the Investment in Atlanta account balance at the end of 2024   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 2024  d  Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2024  At year end, there were no intra entity receivables or payables  How did Truman allocate Atlanta's acquisition date fair value to the various assets acquired and liabilities assumed in the combination  Prepare a worksheet to consolidate the financial statements of these two companies as of December 31,2024   At year end, there were no intra entity receivables or payables  Note  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  On July 1, 2024, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $801,900 in cash and equity securities  The remaining 30 percent of Atlanta's shares traded closely near an average price that totaled $325,100 both before and after Truman's acquisition  In reviewing its acquisition, Truman assigned a $129,500 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 2024  In addition, the subsidiary's income was earned uniformly throughout the year  The subsidiary declared dividends quarterly  Required  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 2024   d  Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2024  At year end, there were no intra entity receivables or payables  How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests

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Question

Problem 4-37 (Algo) (LO 4-2, 4-3, 4-6, 4-7, 4-8) On July 1, 2024, Truman Company acquired a 70 percent interest in Atlanta Company in exchange