On July 1, 2018, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $767,200 in cash and equity securities. The remaining 30 percent of Atlanta's shares traded closely near an average price that totaled $328,800 both before and after Truman's acquisition. In reviewing its acquisition, Truman assigned a $138,500 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 2018. In addition, the subsidiary's income was earned uniformly throughout the year. The subsidiary declared dividends quarterly. Atlanta Truman $ (761,695) (497,000) Revenues Operating expenses Income of subsidiary 489,000 39,305 357,000 Net income $ (312,000 (140,000) Retained earnings, 1/1/18 Net income (above) Dividends declared $ (883,000) (516,000) (140,000) 70,000 $ (1,055,000 (586,000) $ 484,995 433,000 (312,000) 140,000 Retained earnings, 12/31/18 Current assets Investment in Atlanta Land Buildings 782,005 431,000 749,000 Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/18 233,000 659,000 $ 2,447,000 1,325,000 $ (892,000) (419,000) (300,000) (20,000) (1,855,00)(586,000) $ (2,447,000) (1,325,000) (95,000) (405,000) Total liabilities and stockholders' equity 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 2018? d. Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2018. 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? Consideration transferred by Truman Noncontrolling interest fair value Atlanta's acquisition-date total fair value Book value of Atlanta Fair value in excess of book value Excess fair value assigned: 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 2018? d. Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2018. 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 Interest Goodwil 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 2018? d. Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2018. 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 derive the Investment in Atlanta account balance at the end of 2018? Initial value at acquisition date Truman's share of Atlanta's net income for half year Dividends 2018 Investment account balance 12131/18 Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2018. 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. Amounts in the Debit and Credit columns should be entered as positive. Negative amounts for the Noncontrolling Interest and Consolidated Totals columns should be entered with a minus sign.) show less TRUMAN COMPANY AND SUBSIDIARY ATLANTA COMPANY Consolidation Worksheet For Year Ending December 31, 2018 Truman Atlanta Consolidation Entries Noncontrolling Consolidated Company Company Debit Credit Interest Totals Revenues Operating expenses Net income of subsidiary Separate company net income Consolidated net income Net income attributable to NCI Net income attributable to Truman S (761,695)S (497,000) 357,000 489,000 (39,305) S (312,000)$ (140,000) Retained earnings, 1/1 Net income Dividends declared Retained earnings 12/31 S (883,000) (516,000) (140,000) 70,000 S (1,055,000) (586,000) (312,000) 140,000 Current assets 484.995433,000 Retained earnings, 1/1 Net income Dividends declared Retained earnings 12/31 S (883,000) (516,000) (140,000) 70,000 S (1,055,000) (586,000) (312,000) 140,000 Current assets Investment in Atlanta Land Buildings Patent Goodwill Total assets Liabilities Common stock Additional paid in capital Retained earnings 12/31 Noncontrolling interest 71 Noncontrolling interest 12/31 Total liabilities and equity S 484,995 S 433,000 782,005 431,000 749,000 233,000 659,000 S 2,447,000S 1,325,000 $ (892,000)S (419,000) (300,000) (20,000) (586,000) (95,000) (405,000) (1,055,000) S (2,447,000)S (1,325,000) On July 1, 2018, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $767,200 in cash and equity securities. The remaining 30 percent of Atlanta's shares traded closely near an average price that totaled $328,800 both before and after Truman's acquisition. In reviewing its acquisition, Truman assigned a $138,500 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 2018. In addition, the subsidiary's income was earned uniformly throughout the year. The subsidiary declared dividends quarterly. Atlanta Truman $ (761,695) (497,000) Revenues Operating expenses Income of subsidiary 489,000 39,305 357,000 Net income $ (312,000 (140,000) Retained earnings, 1/1/18 Net income (above) Dividends declared $ (883,000) (516,000) (140,000) 70,000 $ (1,055,000 (586,000) $ 484,995 433,000 (312,000) 140,000 Retained earnings, 12/31/18 Current assets Investment in Atlanta Land Buildings 782,005 431,000 749,000 Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/18 233,000 659,000 $ 2,447,000 1,325,000 $ (892,000) (419,000) (300,000) (20,000) (1,855,00)(586,000) $ (2,447,000) (1,325,000) (95,000) (405,000) Total liabilities and stockholders' equity 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 2018? d. Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2018. 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? Consideration transferred by Truman Noncontrolling interest fair value Atlanta's acquisition-date total fair value Book value of Atlanta Fair value in excess of book value Excess fair value assigned: 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 2018? d. Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2018. 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 Interest Goodwil 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 2018? d. Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2018. 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 derive the Investment in Atlanta account balance at the end of 2018? Initial value at acquisition date Truman's share of Atlanta's net income for half year Dividends 2018 Investment account balance 12131/18 Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2018. 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. Amounts in the Debit and Credit columns should be entered as positive. Negative amounts for the Noncontrolling Interest and Consolidated Totals columns should be entered with a minus sign.) show less TRUMAN COMPANY AND SUBSIDIARY ATLANTA COMPANY Consolidation Worksheet For Year Ending December 31, 2018 Truman Atlanta Consolidation Entries Noncontrolling Consolidated Company Company Debit Credit Interest Totals Revenues Operating expenses Net income of subsidiary Separate company net income Consolidated net income Net income attributable to NCI Net income attributable to Truman S (761,695)S (497,000) 357,000 489,000 (39,305) S (312,000)$ (140,000) Retained earnings, 1/1 Net income Dividends declared Retained earnings 12/31 S (883,000) (516,000) (140,000) 70,000 S (1,055,000) (586,000) (312,000) 140,000 Current assets 484.995433,000 Retained earnings, 1/1 Net income Dividends declared Retained earnings 12/31 S (883,000) (516,000) (140,000) 70,000 S (1,055,000) (586,000) (312,000) 140,000 Current assets Investment in Atlanta Land Buildings Patent Goodwill Total assets Liabilities Common stock Additional paid in capital Retained earnings 12/31 Noncontrolling interest 71 Noncontrolling interest 12/31 Total liabilities and equity S 484,995 S 433,000 782,005 431,000 749,000 233,000 659,000 S 2,447,000S 1,325,000 $ (892,000)S (419,000) (300,000) (20,000) (586,000) (95,000) (405,000) (1,055,000) S (2,447,000)S (1,325,000)