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On July 1, 2021, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $759,850 in cash and equity securities. The remaining 30 percent of Atlanta's shares traded closely near an average price that totaled $325,650 both before and after Truman's acquisition. In reviewing its acquisition, Truman assigned a $138,000 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. Truman Revenues $ Atlanta (818,160) $ (458,000) 483,000 Operating expenses Incone of subsidiary 348,000 e (28.840) Net income $ (364,000) 3 (110,000) S (505,000) Retained earnings, 1/1/21 Net Income (above) Dividends declared (847,000) S (364,000) (110,000) 175,000 50,000 (565,000) Retained earnings, 12/31/21 $(1,036,000) 3 Current assets $ 425,810 5 392,000 Investment in Atlanta 771,190 423,000 Land Buildings 0 216,000 642,000 760,000 Total assets $1,250,000 $ 2,300,000 $ (644,000) Liabilities. Connon stock $ (365,000) (300,000) (20,000) (95,000) (405,000) (1,016,000) Additional paid-in capital. Retained earnings, 12/31/21 (565,000) Activate Windows Liabilities Common stock $ (365,088) (300,000) Additional paid-in capital $ (844,000) (95,000) (485,000) (1,036,000) (20,000) (565,000) Retained earnings, 12/31/21 Total liabilities and stockholders equity $(2,380,000) $(1,250,000) a. What is the excess fair-value assigned to patent and goodwill? 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 What is the excess fair-value assigned to patent and goodwill? Patent Goodwill Activate Windows Go to Settings to activate Windos Check my work Additional paid-in capital Retained earnings, 12/31/21 (405,008) (1.036,000) (28,000) (565,000) Total liabilities and stockholders equity $ (2,380,000) $ (1,250,000) a. What is the excess fair-value assigned to patent and goodwill? 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 Noncontrolling Interest Goodwill Activate Windows a. What is the excess fair-value assigned to patent and goodwill? 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. 1 ces Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D 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 Activate Windows Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2021. At year-end, there were no intr or payables. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount i of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Input all a values.) TRUMAN COMPANY AND ATLANTA COMPANY Consolidation Worksheet For Year Ending December 31, 2021 Truman Atlanta Company Company $ (818,160) S (458,000) Consolidation Entries Debit Noncontrolling Consolidated Interest Totals Credit Revenues Operating expenses 483,000 (28,840) Net income of subsidiary Separate company net income Consolidated net income 348,000 0 (110,000) $ (364,000) $ Net income attributable to NCI Net income attributable to Truman Retained earnings, 1/1/21 $ (847,000) $ (505,000) Net income (364,000) (110,000) 50.000 Dividends declared 175.000 tivate Window Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Current assets Investment in Atlanta Land Buildings Patent Goodwill Total assets Liabilities Common stock Additional paid in capital Retained earnings, 12/31/21 Noncontrolling interest 7/1 Noncontrolling interest 12/31 Total liabilities and stockholders equity $ (847,000) $ (505,000) (364,000) (110,000) 175,000 50,000 $(1,036,000) $ (565,000) $ 425,810 S 392,000 771,190 0 423,000 216.000 760.000 642,000 $ 2,380,000 $ 1,250,000 $ (844,000) $ (365,000) (95,000) (300,000) (405,000) (20,000) (1,036,000) (565,000) S (2.380,000) $ (1,250,000) On July 1, 2021, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $759,850 in cash and equity securities. The remaining 30 percent of Atlanta's shares traded closely near an average price that totaled $325,650 both before and after Truman's acquisition In reviewing its acquisition, Truman assigned a $138,000 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. Truman Atlanta Revenues Operating expenses Income of subsidiary $ (818,160) $ (458,000) 483,000 (28,840) 348,000 0 Net income $ (364,000) $ (110,000) Retained earnings, 1/1/21 Net income (above) Dividends declared 5 (847,000) 5 (505,000) (364,000) 175,000 $(1,036,000) (110,000) 50,000 (565,000) 392,000 Retained earnings, 12/31/21 Current assets $ S 425,810 S Investment in Atlanta Land 771,190 423,000 760,000 0 216,000 642,000 Buildings Total assets. $ 2,380,000 $ 1,250,000 Liabilities $ (844,000) Common stock Additional paid-in capital (95,000) (405,000) (1,036,000) $(365,000) (300,000) (20,000) (565,000) Retained earnings, 12/31/21 Total liabilities and stockholders' equity $(2,300,000) $ (1,250,000) a. What is the excess fair-value assigned to patent and goodwill? 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. Retained earnings, 1/1/21 Net Income (above) Dividends declared $ (847,000) $ (505,000) (364,000) (110,000) 175,000 50,000 Retained earnings, 12/31/21 $ (1,036,000) $ Current assets (565,000) 392,000 S $ Investment in Atlanta Land 425,810 771,190 0 Buildings 423,000 760,000 216,000 642,000 Total assets $ 2,380,000 $1,250,000 Liabilities Common stock $ (844,000) $ (365,000) (95,000) (300,000) Additional paid-in capital Retained earnings, 12/31/21 (405,000) (1,036,000) (20,000) (565,000) Total liabilities and stockholders' equity $(2,380,000) $(1,250,000) a. What is the excess fair-value assigned to patent and goodwill? 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 What is the excess fair-value assigned to patent and goodwill? Pater Goodwill Required A Required B > $ (505,000) Retained earnings, 1/1/21 Net income (above) Dividends declared $ (847,000) (364,000) 175,000 (110,000) 50,000 Retained earnings, 12/31/21 $ (1,036,000) $ (565,000) Current assets $ 425,810 $ 392,000 Investment in Atlanta Land 771,190 0 423,000 216,000 Buildings 760,000 642,000 Total assets $ 2,380,000 $ 1,250,000 Liabilities. Common stock $ $ (365,000) (844,000) (95,000) (405,000) Additional paid-in capital (300,000) (20,000) Retained earnings, 12/31/21 (1,036,000) (565,000) Total liabilities and stockholders' equity $ (2,380,000) $(1,250,000) S a. What is the excess fair-value assigned to patent and goodwill? 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 Interest Noncontrolling Interest Goodwill ces Retained earnings, 1/1/21 Net income (above) Dividends declared. (847,000) $ (505,000) (364,000) 175,000 (110,000) 50,000 Retained earnings, 12/31/21 $ (1,036,000) $ (565,000) Current assets $ 425,810 $ 771,190 Investment in Atlanta Land 392,000 0 216,000 642,000 423,000 Buildings 760,000 Total assets $ 2,380,000 $ 1,250,000 Liabilities $ Common stock $ (844,000) (95,000) (405,000) (1,036,000) (365,000) (300,000) (20,000) Additional paid-in capital Retained earnings, 12/31/21 (565,000) Total liabilities and stockholders' equity. $ (2,380,000) $(1,250,000) a. What is the excess fair-value assigned to patent and goodwill? 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, the 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 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 $ 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 A TRUMAN COMPANY AND ATLANTA COMPANY Consolidation Worksheet Consolidation Entries Debit Noncontrolling Consolidated Interest Totals Credit For Year Ending December 31, 2021 Truman Atlanta Company Company $ (818,160) S (458,000) 483,000 (28,840) Revenues Operating expenses Net income of subsidiary Separate company net income. Consolidated net income 348,000 01 (110,000) $ (364,000) $ Net income attributable to NCI Net income attributable to Truman Retained earnings, 1/1/21 5 (847,000) $ (505,000) Net income (364,000) 175,000 (110,000) 50,000 Dividends declared Retained earnings, 12/31/21 $ (1.036.000) S (565,000) Current assets $ 425,810 $ 771.190 392.000 0 Investment in Atlanta Land 423,000 216,000 Buildings 760,000 642,000 Patent Goodwill Total assets $ 2,380,000 $ 1.250,000) Liabilities $ (844,000) S (365,000) Common stock (95,000) (300,000) Additional paid in capital (405,000) (20,000) tes Revenues Operating expenses Net income of subsidiary Separate company net income Consolidated net income Net income attributable to NCI - Net income attributable to Truman Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Current assets Investment in Atlanta Land Buildings Patent Goodwill Total assets Liabilities Common stock Additional paid in capital Retained earnings, 12/31/21 Noncontrolling interest 7/1 Noncontrolling interest 12/31 Total liabilities and stockholders' equity TRUMAN COMPANY AND ATLANTA COMPANY Consolidation Worksheet For Year Ending December 31, 2021 Truman Atlanta Company Company $ (818,160) $ (458,000) 348,000 483,000 (28,840) 0 $ (364,000) $ (110,000) S (847,000) $ (505,000) (110,000) (364,000) 175.000 50,000 $ (1,036,000) $ (565,000) $ 425,810 $ 392,000 771,190 0 423,000 216,000 760,000 642,000 $ 2,380,000 $ 1,250,000 $ (844,000) $ (365,000) (95,000) (300,000) (405.000) (20,000) (1,036,000) (565,000) S (2,380,000) $ (1.250,000) S Consolidation Entries Debit Credit 0$ Noncontrolling Consolidated Totals Interest 0