On July 1, 2013, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $794,850 in cash and equity…

On July 1, 2013, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $794,850 in cash and equity securities. The remaining 30 percent of Atlanta’s shares traded closely near an average price that totaled $340,650 both before and after Truman’s acquisition.In reviewing its acquisition, Truman assigned a $134,500 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 2013. In addition, the subsidiary’s income was earned uniformly throughout the year. Subsidiary dividend payments were made quarterly.Truman AtlantaRevenues $ (830,065 ) (467,000 )Operating expenses 487,000 346,000Income of subsidiary (32,935 )Net income $ (376,000 ) (121,000)Retained earnings, 1/1/13 (832,000 ) (584,000)Net income (above) (376,000 ) (121,000 )Dividends paid 175,000 80,000Retained earnings, 12/31/13 (1,033,000 )(625,000)Current assets $ 511,215 $ 463,000Investment in Atlanta 799,785Land 407,000 269,000Buildings 730,000 640,000Total assets $ 2,448,000 1,372,000Liabilities $ (915,000 ) (427,000)Common stock (95,000) (300,000)Additional paid-in capital (405,000) (20,000)Retained earnings, 12/31/13 (1,033,000) (625,000)Total liabilities and SE (2,448,000) $(1,372,000)a.How did Truman allocate Atlanta’s acquisition-date fair value to the various assets acquired and liabilities assumed in the combination? (Input all amounts as positive values.)Consideration transferred by TrumanNoncontrolling interest fair valueAtlanta’s acquisition-date total fair valueBook value of AtlantaFair value in excess of book valueExcess fair value assigned to:Patent:Goodwill:B. How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interestsGoodwill:Controlling InterestNon controlling interestC. How did Truman derive the Investment in Atlanta account balance at the end of 2013?Initial value at acquisition dateTruman’s share of Atlanta’s income for half yearDividends 2013Investment account balance 12/31/13I would also need to know what NCI in Atlanta’s income and how much Noncontrolling interest, 12/31 is?B.Additional RequirementsLevel of Detail: Show all work

On July 1, 2013, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $794,850 in cash and equity securities. The remaining 30 percent of Atlanta’s…

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