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On July 1, 2024, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $842,500 in cash and equity securities. The remaining 30 percent of Atlanta's shares traded closely near an average price that totaled $342,500 both before and after Truman's acquisition. In reviewing its acquisition, Truman assigned a $127,500 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 ? 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, were no intra-entity receivables or payables. Complete this question by entering your answers in the tabs below. How did Truman allocate Atlanta's acquisition-date fair value to the various assets acquired and liabilities assumed in the combination? 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, the were no intra-entity receivables or payables. Complete this question by entering your answers in the tabs below. How did Truman allocate Atlanta's acquisition-date fair value to the various assets acquired and liabilities assumed in the combination? Complete this question by entering your answers in the tabs below. How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests? Complete this question by entering your answers in the tabs below. How did Truman derive the Investment in Atlanta account balance at the end of 2024? \begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{9}{|c|}{ Consolidation Worksheet } \\ \hline \multicolumn{9}{|c|}{ For Year Ending December 31, 2024} \\ \hline & \multirow{2}{*}{\multicolumn{2}{|c|}{\begin{tabular}{l} Truman \\ Company \end{tabular}}} & \multirow{2}{*}{\multicolumn{2}{|c|}{\begin{tabular}{c} Atlanta \\ Company \end{tabular}}} & \multicolumn{2}{|c|}{ Consolidation Entries } & \multirow{3}{*}{\begin{tabular}{c} Noncontrolling \\ Interest \end{tabular}} & \multirow{3}{*}{\begin{tabular}{c} Consolidated \\ Totals \end{tabular}} \\ \hline & & & & & Debit & Credit & & \\ \hline Revenues & $ & (739,075) & $ & (479,000) & & & & \\ \hline Operating expenses & & 403,000 & & 308,000 & & & & \\ \hline Separate company net income & $ & (387,000) & $ & (171,000) & & & & \\ \hline \multicolumn{9}{|l|}{ Consolidated net income } \\ \hline \multicolumn{9}{|c|}{ Net income attributable to noncontrolling interest } \\ \hline \multicolumn{9}{|l|}{ Net income attributable to Truman } \\ \hline Retained earnings, 1/1/24 & $ & (915,000) & $ & (589,000) & & & & \\ \hline Net income & & (387,000) & & (171,000) & & & P & \\ \hline Retained earnings, 12/31/24 & $ & (1,152,000) & $ & (700,000) & & & & \\ \hline Current assets & $ & 501,575 & $ & 402,000 & & & P & \\ \hline Investment in Atlanta & & 872,425 & & 0 & & & & \\ \hline Land & & 444,000 & & 225,000 & & & & \\ \hline Buildings & & 715,000 & & 713,000 & & & & \\ \hline \multicolumn{9}{|l|}{ Patent } \\ \hline \multicolumn{9}{|l|}{ Goodwill } \\ \hline Total assets & $ & 2,533,000 & $ & 1,340,000 & & & & \\ \hline Liabilities & & (881,000) & $ & (320,000) & & & & \\ \hline Common stock & & (95,000) & & (300,000) & & & & \\ \hline Additional paid in capital & & (405,000) & & (20,000) & & & & \\ \hline Retained earnings, 12/31/24 & & (1,152,000) & & (700,000) & & & & \\ \hline Total liabilities and stockholders' equity & & (2,533,000) & $ & (1,340,000) & & & & \\ \hline \end{tabular}

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