4 The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $7.30 per share on January 1, 2017. The remaining 20 percent of Devine's shares also traded actively at $7.30 per share before and after Holtz's acquisition. An appraisal made on that date determined that all book values appropriately reflected the fair values of Devine's underlying accounts except that a building with a 5-year future life was undervalued by $64,500 and a fully amortized trademark with an estimated 10-year remaining life had a $84,000 fair value. At the acquisition date, Devine reported common stock of $100,000 and a retained earnings balance of $333,500. 10 points Following are the separate financial statements for the year ending December 31, 2018 eBook Holtz Devine Corporation Sales Cost of goods sold Operating expenses Dividend income S (674,000) (340, 250) 233,000 275,000 (16,000 166,000 83,250 Print Net income Retained earnings, 1/1/18 Net income (above) Dividends declared $ (182,000) 91,000) $ (783,000) (403,500) (91,000) (182,000) 70,000 20,000 $ (895,000) (474,500) Retained earnings, 12/31/18 Current assets Investment in Devine, Inc Buildings and equipment (net) Trademarks 301,000 584,000 825,000 115,000 $ 1,825,000 196,500 423,000 181,000 $800,500 Total assets Liabilities Common stock Retained earnings, 12/31/18 (above) (226,000) (100,000) (895,000) (474,500) $ (1,825,000) (800,500) (320,000) Total liabilities and equities At year-end, there were no intra-entity receivables or payables. a. Prepare a worksheet to consolidate these two companies as of December 31, 2018 b. Prepare a 2018 consolidated income statement for Holtz and Devine c. If instead the noncontrolling interest shares of Devine had traded for $5.82 surrounding Holtz's acquisition date, what is the impact on goodwill