a.

Consideration transferred 767200

NCI fair value 328800

Acquisition date fair value 1096000

Book value of atlanta 836000
(300000+20000+516000)
Fair value in excess of book value 260000

Exccess assigned to specific accounts Life

Patent 138500 5 years
Goodwill 121500 Indefinite
Total
974500
b.
Goodwill allocation with control premium Controlling Noncontrolling
Interest Interest
Fair values at acquisition date $767,200 $328,800
Relative fair values of identifiable net assets
70% and 30% of (acquisition date
book value plus patent = net asset fair value) 682,150 292,350
Goodwill $85,050 $36,450

c.

Initial value at acquisition date $767,200

Truman’s share of Atlanta’s net income for half year
([$140,000 – 27,700 amortization )× ½ year] × 70%) 39,305
Dividends 2018 ($70,000 × ½ year × 70%) -24,500
Investment account balance 12/31/18 $782,005

NCI share in income 16845

([$140,000 – 27,700 amortization )× ½ year] × 30%)
Annual
Ammortization
27700
0
27700
 Truman Atlanta

Revenues $ (761,695) $ (497,000) (S)

Operating Expenses $ 489,000 $ 357,000 ('E)
Net income of subsidiary $ (39,305) (I)
Separate company net income $ (312,000) $ (140,000)
Consolidated net income
Net income attributable to NCI
Net income attributable to Truman

Retained earnings, 1/1 $ (883,000) $ (516,000) (S)

Net income (above) $ (312,000) $ (140,000)
dividends declared $ 140,000 $ 70,000

Retained earnings, 12/31 $ (1,055,000) $ (586,000)

Current Assets $ 484,995 $ 433,000

Investment in Atlanta $ 782,005 (D)

Land $ 431,000 $ 233,000

Building $ 749,000 $ 659,000
Patent (A1)
Goodwill (A2)
Total assets $ 2,447,000 $ 1,325,000

Liabilities $ (892,000) $ (419,000)

Common stock $ (95,000) $ (300,000) (S)
AdditionalPaid in capital $ (405,000) $ (20,000) (S)
Retained earnings, 12/31 $ (1,055,000) $ (586,000)
Noncontrolling interest 7/1

Noncontrolling interest 12/31

Total liab. and equity $ (2,447,000) $ (1,325,000)
Adjustments & Eliminations NCI Cons.

$ 248,500 $ (1,010,195)
$ 13,850 (S) $ 178,500 $ 681,350
$ 39,305 $ -

$ (328,845)
$ (16,845) $ 16,845
$ (312,000)

$ 516,000 $ (883,000)
$ (312,000)
(S) $ 35,000 $ 10,500
(D) $ 24,500 $ 140,000
$ (1,055,000)

$ 917,995
$ 24,500 (S) $ 585,200
(I) $ 39,305
(A1) $ 96,950
(A2) $ 85,050
$ 664,000
$ 1,408,000
$ 138,500 ('E) $ 13,850 $ 124,650
$ 121,500 $ 121,500
$ 3,236,145

$ (1,311,000)
$ 300,000 $ (95,000)
$ 20,000 $ (405,000)
$ (1,055,000)
(A1) $ 41,550
(A2) $ 36,450
(S) $ 285,800 $ (363,800)
$ (370,145) $ (370,145)
$ 1,422,155 $ 1,422,155 $ (3,236,145)