4-7 38. The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $7.20 per share on January 1, 2017. The remaining 20 percent of Devine's shares also traded actively at $7.20 per share before and after Holtz's acquisition. An appraisal made on that date deter- mined that all book values appropriately reflected the fair values of Devine's underlying accounts except that a building with a five-year future life was undervalued by $85,500 and a fully amortized NEW TO Otatu myn Upute to your cu Preau Jun Lay lay May Apr har Consolidated Financial Statements and Outside Ownership 203 trademark with an estimated 10-year remaining life had a $64,000 fair value. At the acquisition date, Devine reported common stock of $100,000 and a retained earnings balance of $226,500. Following are the separate financial statements for the year ending December 31, 2018: Holtz Devine, Corporation Inc. Sales $ (641,000) $(399.000) Cost of goods sold 198,000 176,000 Operating expenses 273.000 126,000 Dividend income (16,000) -0- Net income $ (186,000) $ (97.000) Retained earnings, 1/1/18 $ (762,000) $(296,500) Net income (above) (186,000) (97.000) Dividends declared 70.000 20.000 Retained earnings, 12/31/18, $ (878.000 $(373,500) Current assets $ 121,000 $ 120,500 Investment in Devine, Inc. 576,000 -O- Buildings and equipment (net). 887.000 335,000 Trademarks. 149,000 236,000 Total assets. $ 1,733,000 $ 691,500 Liabilities $ (535,000) $(218,000) Common stock (320,000) (100,000) Retained earnings, 12/31/18 (above) (878,000) (373,500) Total liabilities and equities $(1.733,000 $(691,500 lar Mar Mar Jan 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 $4.76 surrounding Holtz's acquisition date, what is the impact on goodwill? BO 1010