Requires A, B, C

Chapter 4 Homework i 10 On January 1, 2018, Allan acquired an additional 80 percent interest in Sysinger and provided the following fair-value assessments of Sysinger's ownership components: 8.37 Consideration transferred by Allan for 80% interest $ 1, 425,600 points Fair value of Allan's 15% previous ownership 267 , 300 Noncontrolling interest's 5% fair value 89 , 100 Total acquisition-date fair value for Sysinger Company $ 1, 782,000 eBook Also, as of January 1, 2018, Allan assessed a $420,000 value to an unrecorded customer contract recently negotiated by Sysinger. The customer contract is anticipated to have a remaining life of four years. Sysinger's other assets and liabilities were judged to have fair values equal to their book values. Allan elects to continue applying the equity method to this investment for internal reporting Print purposes. At December 31, 2018, the following financial information is available for consolidation: References Allan sysinger Company Company Revenues $ (977,600) $ (404, 000) Operating expenses 645, 600 244 , 400 Equity earnings of Sysinger (51, 870) Gain on revaluation of Investment in Sysinger to fair value (46, 935) Net income $ 430, 805 $ 159, 600 Retained earnings, January 1 (964, 600) $ 638, 400) Net income 430,805) 159,600) Dividends declared 140,000 42, 400 Retained earnings, December 31 $ (1, 255, 405) (755,600) Current assets $ 287,800 574, 300 Investment in Sysinger (equity method) 1, 704, 490 Property, plant, and equipment 846,000 615, 000 Patented technology 870, 600 386, 000 Customer contract Total assets $ 3,708, 890 $ 1, 575, 300 Liabilities $(1, 326, 485) $ (106,700) Common stock 920, 000) 522, 000) Additional paid-in capital Retained earnings, December 31 207, 000 (1, 255, 405) 191, 000) 755, 600) Total liabilities and equities $ (3, 708,890) $ (1,575, 300) a. How should Allan allocate Sysinger's total acquisition-date fair value (January 1, 2018) to the assets acquired and liabilities assumed for consolidation purposes? b. Calculate the following as they would appear in Allan's pre-consolidation 2018 statements. c. Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2018. Mc Graw