advance accounting 284193

On July 1, 2013, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $749,000 in cash and equity securities. The remaining 30 percent of Atlanta’s shares traded closely near an average price that totaled $321,000 both before and after Truman’s acquisition.?? In reviewing its acquisition, Truman assigned a $112,500 fair value to a patent recently developed by Atlanta, even though it was not recorded within the financial records of the subsidiary. This patent is anticipated to have a remaining life of five years.?? The following financial information is available for these two companies for 2013. In addition, the subsidiary’s income was earned uniformly throughout the year. Subsidiary dividend payments were made quarterly.?? ?Truman ?Atlanta ??Revenues?$?(742,975?)?$?(468,000?)??Operating expenses??476,000???314,000???Income of subsidiary??(46,025?)?????????????Net income?$?(313,000?)?$?(154,000?)??? ? ? ? ? ? ??Retained earnings, 1/1/13?$?(906,000?)?$?(510,000?)??Net income (above)??(313,000?)??(154,000?)??Dividends paid??160,000???80,000???????????Retained earnings, 12/31/13?$?(1,059,000?)?$?(584,000?)??? ? ? ? ? ? ??Current assets?$?504,975??$?404,000???Investment in Atlanta??767,025??????Land??465,000???241,000???Buildings??720,000???646,000???????????Total assets?$?2,457,000??$?1,291,000???? ? ? ? ? ? ??Liabilities?$?(898,000?)?$?(387,000?)??Common stock??(95,000?)??(300,000?)??Additional paid in capital??(405,000?)??(20,000?)??Retained earnings, 12/31/13??(1,059,000?)??(584,000?)??????????Total liabilities and stockholders’ equity?$?(2,457,000??This document was truncated here because it was created in the Evaluation Mode.