mework On January 1, 2020, Holland Corporation paid $7 per share to a group of Zeeland Corporation shareholders to acquire 60.000 shares of Zeeland's outstanding voting stock, representing a 60 percent ownership interest. The remaining 40,000 shares of Zeeland continued to trade in the market close to its recent average of $6.00 per share both before and after the acquisition by Holland Zeeland's acquisition date balance sheet follows: $ Current assets Property and equipment (net) Patents 15,200 249,200 Liabilities Comon stock Retained earnings $ 230,000 100.000 140.000 $ 470,000 470,000 On January 1, 2020. Holland assessed the carrying amount of Zeeland's equipment (5-year remaining life to be undervalued by $67.000 Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $283.900. Zeeland's acquisition date fair values for its current assets and liabilities were equal to their carrying amounts. Any remaining excess of Zeeland's acquisition date fair value over its book value was attributed to goodwill. The companies financial statements for the year ending December 31, 2021, follow. Cost of goods sold Depreciation expense Amortization expense Other operating expenses Equity in Zeeland earnings Separate company net income Holland $ (780,900) 395,000 15,200 56,00 (48,126 $(263,226) Zeeland 5 (440,500) 206,00 32,800 19,500 59.900 $(122,000) Retained earnings 1/1 Net incom Dividends declared Retained earnings 12/31 $ (521,400) (263,226 50,000 $(1,034,626) $ (328,900) (122,00) 30,000 5 (420,900) $ 93,500 Current assets Investment in Zeeland Property and equipment (net) Patents Total assets $ 126,200 538,392 849,000 151400 $ 1,664,992 271,00 159, $ 524,000 $ (3.100) Liabilities Common stock-Holland Common stock-Zeeland Retained earnings 12/31 Total liabilities and owners equity $ (310,366) (320,000) B 0.654,626) 5(1,664,982) (100,000) (420,900) $ (524,000) At year-end, there were no intra-entity receivables or payables. a. Compute the amount of goodwill recognized in Holland's acquisition of Zeeland and the allocation of goodwill to the controlling and noncontrolling interest. b. Show how Holland determined its December 31, 2021, Investment in Zeeland account balance c. Prepare a worksheet to determine the amounts that should appear on Holland's December 31, 2021. consolidated financial statements Complete this question by entering your answers in the tabs below. Reg A and B Reg a. Compute the amount of goodwill recognized in Holland's acquisition of Zeeland and the allocation of goodwill to the controlling and noncontrolling interest. b. Show how Holland determined its December 31, 2021, Investment in Zeeland account balance. (Negative amounts should Noncontrolling Interest Consolidated Totals Accounts Sales HOLLAND CORPORATION AND ZEELAND CORPORATION Consolidation Worksheet For Year Ending December 31, 2021 Consolidation Entries Holland Zeeland Debit Credit $ (780,900) $ (440,500) 395,800 206,000 98,000 32,800 15,200 19,800 56,800 59,900 (48,126) 0 $ (263,226) S (122,000) 05 Cost of goods sold Depreciation expense Amortization expense Other operating expenses Equity in Zeeland earnings Separate company net income Consolidated net income Noncontrolling interest in CNI Controlling interest net incomo Retained earnings 1/1 Net income Dividends declared Retained earnings 12/31 Current assets Investment in Zooland, Inc Property and equipment (net) Patents Goodwill Total assets Liabilities Common stock Noncontrolling interest Retained earnings 12/31 Total liabilities and equities $ (821,400) $ (328,900) (263,226) (122,000) 50,000 30,000 $ (1,034,626) $ (420,900) $ 126,200 $ 93,500 538,392 0 849,000 271,000 151,400 159,500 0 0 $ 1,664,992 $ 524,000 (310,366) (3,100) (320,000) (100,000) (1,034,626) (420,900) $ (1,664,992) S (524,000) 0 $ 0 mework On January 1, 2020, Holland Corporation paid $7 per share to a group of Zeeland Corporation shareholders to acquire 60.000 shares of Zeeland's outstanding voting stock, representing a 60 percent ownership interest. The remaining 40,000 shares of Zeeland continued to trade in the market close to its recent average of $6.00 per share both before and after the acquisition by Holland Zeeland's acquisition date balance sheet follows: $ Current assets Property and equipment (net) Patents 15,200 249,200 Liabilities Comon stock Retained earnings $ 230,000 100.000 140.000 $ 470,000 470,000 On January 1, 2020. Holland assessed the carrying amount of Zeeland's equipment (5-year remaining life to be undervalued by $67.000 Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $283.900. Zeeland's acquisition date fair values for its current assets and liabilities were equal to their carrying amounts. Any remaining excess of Zeeland's acquisition date fair value over its book value was attributed to goodwill. The companies financial statements for the year ending December 31, 2021, follow. Cost of goods sold Depreciation expense Amortization expense Other operating expenses Equity in Zeeland earnings Separate company net income Holland $ (780,900) 395,000 15,200 56,00 (48,126 $(263,226) Zeeland 5 (440,500) 206,00 32,800 19,500 59.900 $(122,000) Retained earnings 1/1 Net incom Dividends declared Retained earnings 12/31 $ (521,400) (263,226 50,000 $(1,034,626) $ (328,900) (122,00) 30,000 5 (420,900) $ 93,500 Current assets Investment in Zeeland Property and equipment (net) Patents Total assets $ 126,200 538,392 849,000 151400 $ 1,664,992 271,00 159, $ 524,000 $ (3.100) Liabilities Common stock-Holland Common stock-Zeeland Retained earnings 12/31 Total liabilities and owners equity $ (310,366) (320,000) B 0.654,626) 5(1,664,982) (100,000) (420,900) $ (524,000) At year-end, there were no intra-entity receivables or payables. a. Compute the amount of goodwill recognized in Holland's acquisition of Zeeland and the allocation of goodwill to the controlling and noncontrolling interest. b. Show how Holland determined its December 31, 2021, Investment in Zeeland account balance c. Prepare a worksheet to determine the amounts that should appear on Holland's December 31, 2021. consolidated financial statements Complete this question by entering your answers in the tabs below. Reg A and B Reg a. Compute the amount of goodwill recognized in Holland's acquisition of Zeeland and the allocation of goodwill to the controlling and noncontrolling interest. b. Show how Holland determined its December 31, 2021, Investment in Zeeland account balance. (Negative amounts should Noncontrolling Interest Consolidated Totals Accounts Sales HOLLAND CORPORATION AND ZEELAND CORPORATION Consolidation Worksheet For Year Ending December 31, 2021 Consolidation Entries Holland Zeeland Debit Credit $ (780,900) $ (440,500) 395,800 206,000 98,000 32,800 15,200 19,800 56,800 59,900 (48,126) 0 $ (263,226) S (122,000) 05 Cost of goods sold Depreciation expense Amortization expense Other operating expenses Equity in Zeeland earnings Separate company net income Consolidated net income Noncontrolling interest in CNI Controlling interest net incomo Retained earnings 1/1 Net income Dividends declared Retained earnings 12/31 Current assets Investment in Zooland, Inc Property and equipment (net) Patents Goodwill Total assets Liabilities Common stock Noncontrolling interest Retained earnings 12/31 Total liabilities and equities $ (821,400) $ (328,900) (263,226) (122,000) 50,000 30,000 $ (1,034,626) $ (420,900) $ 126,200 $ 93,500 538,392 0 849,000 271,000 151,400 159,500 0 0 $ 1,664,992 $ 524,000 (310,366) (3,100) (320,000) (100,000) (1,034,626) (420,900) $ (1,664,992) S (524,000) 0 $ 0