DO NOT COPY & PASTE OLD SOLUTION!

THIS IS 2018 QUESTION!

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. Following are the separate financial statements for the year ending December 31, 2018 Holtz Corporation Devine Inc. n50 $ (674,000) (340,250) Sales Cost of goods sold Operating expenses Dividend income 233,000 275,000 (16,000) (182,000) 166,000 83,250 $ (91,000) $ (783,000) (403,500) (91,000) Net income Retained earnings, 1/1/18 Net income (above) Dividends declared (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 s 301,000 $196 500 584,000 825,000 115,000 $1,825,000 423,000 181,000 $ 800,500 Total assets Liabilities Common stock Retained earnings, 12/31/18 (above) (320,000) (895,000) (1,825,000) $ (610,000) (226,000) (100,000) (474,500) (800,500) 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