Problem 4 43 (Algo) (LO 4 2, 4 3, 4 6, 4 7, 4 8) On July 1, 2021, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $761,075 in cash and equity securities The remaining 30 percent of Atlanta's shares traded closely near an average price that totaled $326175 both before and after Truman's acquisition In reviewing its acquisition, Truman assigned a $117 500 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 2021 In addition, the subsidiary's income was earned uniformly throughout the year The subsidiary declared dividends quarterly $ Atlanta $27,000) 376,000 5 5 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 5 (757,375) 472,000 44 625) $ (330,000) (844, 000) (330,000) 145,000 $(1,029, 000) $ 407,300 784,700 452,800 273,eee $ 2,417,000 5 (888,000) (95 000) (405,000) (1,829 eee) 5 (2,417,000) (151, 000) (533,000) (151,000) 60,000 (624,00) 357 000 5 5 267,000 715,ede $ 1,339,000 $(395, eee) (300,000 (20,000) (624 000) 5 (1,339,000) 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 consolidatet financial statements of these two companies as of December 31, 2021 At year end, there were no intra entity receivables or payables ences 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 Required D What is the excess fair value assigned to patent and goodwill Patent Goodwill Hea Required B 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 Required D How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests Controlling Noncontrolling Interest Interest Goodwill TRUMAN COMPANY AND ATLANTA COMPANY Consolidation Worksheet For Year Ending December 31, 2021 Truman Atlanta Consolidation Entries Company Company Debit Credit $ (757375) $ (527 000) 472 000 376,000 (44,625) 0 5 (330,000) 5 (151,000) Noncontrolling Consolidated Interest Totals es Revenues Operating expenses Net income of subsidiary Separate company net income Consolidated net income Not income attributable to NCI Net income attributable to Truman Retained earnings, 1 1 21 Net Income Dividends declared Retained earnings 12 31 21 S (844,000) $ (330,000) 145 000 5 (1,029,000) 5 (533,000) (151,000) 60 000 (624 000) 5 407,300 3 784,700 452,000 773 000 357,000 0 267 000 715,000 Current assets Investment in Atlanta Land Buildings Patent Goodwill Total assets Labs Common stock Additional paid in capital Retained earnings 12 31 21 Noncontrolling Interest 7 1 Noncontroling Interest 12 31 Total abities and stockholders equity 5 2 417 000 $ 1,339,000 $ (888 000) (395,000) 195000) (300,000) (405,000) (20,000) (1 029 000) (624,000) $ 2 417 000) $ (1,339,000) 5 0 $

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Problem 4 43 (Algo) (LO 4 2, 4 3, 4 6, 4 7, 4 8) On July 1, 2021, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $761,075 in cash and equity securities  The remaining 30 percent of Atlanta's shares traded closely near an average price that totaled $326175 both before and after Truman's acquisition In reviewing its acquisition, Truman assigned a $117 500 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 2021  In addition, the subsidiary's income was earned uniformly throughout the year  The subsidiary declared dividends quarterly $ Atlanta $27,000) 376,000 5 5 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 5 (757,375) 472,000 44 625) $ (330,000) (844, 000) (330,000) 145,000 $(1,029, 000) $ 407,300 784,700 452,800 273,eee $ 2,417,000 5 (888,000) (95 000) (405,000) (1,829  eee) 5 (2,417,000) (151, 000) (533,000) (151,000) 60,000 (624,00) 357 000 5 5 267,000 715,ede $ 1,339,000 $(395, eee) (300,000 (20,000) (624 000) 5 (1,339,000) 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 consolidatet financial statements of these two companies as of December 31, 2021  At year end, there were no intra entity receivables or payables  ences 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 Required D What is the excess fair value assigned to patent and goodwill  Patent Goodwill Hea Required B   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 Required D How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests  Controlling Noncontrolling Interest Interest Goodwill TRUMAN COMPANY AND ATLANTA COMPANY Consolidation Worksheet For Year Ending December 31, 2021 Truman Atlanta Consolidation Entries Company Company Debit Credit $ (757375) $ (527 000) 472 000 376,000 (44,625) 0 5 (330,000) 5 (151,000) Noncontrolling Consolidated Interest Totals es Revenues Operating expenses Net income of subsidiary Separate company net income Consolidated net income Not income attributable to NCI Net income attributable to Truman Retained earnings, 1 1 21 Net Income Dividends declared Retained earnings 12 31 21 S (844,000) $ (330,000) 145 000 5 (1,029,000) 5 (533,000) (151,000) 60 000 (624 000) 5 407,300 3 784,700 452,000 773 000 357,000 0 267 000 715,000 Current assets Investment in Atlanta Land Buildings Patent Goodwill Total assets Labs Common stock Additional paid in capital Retained earnings 12 31 21 Noncontrolling Interest 7 1 Noncontroling Interest 12 31 Total abities and stockholders equity 5 2 417 000 $ 1,339,000 $ (888 000) (395,000) 195000) (300,000) (405,000) (20,000) (1 029 000) (624,000) $ 2 417 000) $ (1,339,000) 5 0 $

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Problem 4-43 (Algo) (LO 4-2, 4-3, 4-6, 4-7, 4-8) On July 1, 2021, Truman Company acquired a

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Problem 4-43 (Algo) (LO 4-2, 4-3, 4-6, 4-7, 4-8) On July 1, 2021, Truman Company acquired a

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