*most of question is completed*

The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $7.10 per share on January 1, 2017. The remaining 20 percent of Devines shares also traded actively at $7.10 per share before and after Holtzs acquisition. An appraisal made on that date determined that all book values appropriately reflected the fair values of Devines underlying accounts except that a building with a 5-year future life was undervalued by $50,000 and a fully amortized trademark with an estimated 10-year remaining life had a $80,000 fair value. At the acquisition date, Devine reported common stock of $100,000 and a retained earnings balance of $292,000.

Following are the separate financial statements for the year ending December 31, 2018:

	Holtz Corporation				Devine, Inc.
Sales	$	(761,000	)		$	(396,750	)
Cost of goods sold		267,000				124,000
Operating expenses		258,000				114,750
Dividend income		(16,000	)			0
Net income	$	(252,000	)		$	(158,000	)
Retained earnings, 1/1/18	$	(744,000	)		$	(362,000	)
Net income (above)		(252,000	)			(158,000	)
Dividends declared		80,000				20,000
Retained earnings, 12/31/18	$	(916,000	)		$	(500,000	)
Current assets	$	294,000			$	161,000
Investment in Devine, Inc		568,000				0
Buildings and equipment (net)		810,000				483,000
Trademarks		164,000				180,000
Total assets	$	1,836,000			$	824,000
Liabilities	$	(600,000	)		$	(224,000	)
Common stock		(320,000	)			(100,000	)
Retained earnings, 12/31/18 (above)		(916,000	)			(500,000	)
Total liabilities and equities	$	(1,836,000	)		$	(824,000	)

At year-end, there were no intra-entity receivables or payables.

Prepare a worksheet to consolidate these two companies as of December 31, 2018.

Prepare a 2018 consolidated income statement for Holtz and Devine.

If instead the noncontrolling interest shares of Devine had traded for $5.22 surrounding Holtzs acquisition date, what is the impact on goodwill?

LTZ CORPORATION AND DEVINE, I Consolidation Worksheet For Year Ending December 31, 2018 Consolidation Entries Noncontrolling Devine Inc. Consolidated Totals Holtz Accounts ation Debit Credit Interest (761.000)(396,750 124,000 114,750 (1.157,750) 391,000 390,750 Sales Cost of goods sold Operating expenses Dividend income Separate company net income Consolidated net income 267,000 258,000 (16,000) (252,000) 18,000 16,000 NI attributable to noncontrolling interest NI attributable to Holtz Corp (376,000) 16,000 (360,000) (17,500 (744,000) (362,000) (252,000) 158,000) 20,000 (916,000 (500,000 362,000 Retained earnings, 11 Net income Dividends declared 41,600 (785,600) (358,000) 80,000 (1,063,600) B0,000 16,000 4,000 Retained earnings, 12131 455,000 Current assets Investment in Devine Buildings and equipment (net) Trademarks Goodwill 294,000 568,000 810,000 164,000 161,000 41,600 40,000 72,000 188,000 609,600 10,000 8,000 1,323,000 408,000 188,000 2,374,000 4B3,000 180,000 Total assets 1,836,000 824,000 Liabilities Common stock Retained earnings, 12/31 NCI in Devine, 1/1 NCI in Devine, 12/31 (824,000) (320,000) (1,032,400) (72,400) (85,900) (2,334,700) (600,000) (320,000) (100,000) (916,000) (500,000) 100,000 72,400(724 18,000 594,800 (85,900) Total liabilities and equities (1.836,000) 837,600 24.0 LTZ CORPORATION AND DEVINE, I Consolidation Worksheet For Year Ending December 31, 2018 Consolidation Entries Noncontrolling Devine Inc. Consolidated Totals Holtz Accounts ation Debit Credit Interest (761.000)(396,750 124,000 114,750 (1.157,750) 391,000 390,750 Sales Cost of goods sold Operating expenses Dividend income Separate company net income Consolidated net income 267,000 258,000 (16,000) (252,000) 18,000 16,000 NI attributable to noncontrolling interest NI attributable to Holtz Corp (376,000) 16,000 (360,000) (17,500 (744,000) (362,000) (252,000) 158,000) 20,000 (916,000 (500,000 362,000 Retained earnings, 11 Net income Dividends declared 41,600 (785,600) (358,000) 80,000 (1,063,600) B0,000 16,000 4,000 Retained earnings, 12131 455,000 Current assets Investment in Devine Buildings and equipment (net) Trademarks Goodwill 294,000 568,000 810,000 164,000 161,000 41,600 40,000 72,000 188,000 609,600 10,000 8,000 1,323,000 408,000 188,000 2,374,000 4B3,000 180,000 Total assets 1,836,000 824,000 Liabilities Common stock Retained earnings, 12/31 NCI in Devine, 1/1 NCI in Devine, 12/31 (824,000) (320,000) (1,032,400) (72,400) (85,900) (2,334,700) (600,000) (320,000) (100,000) (916,000) (500,000) 100,000 72,400(724 18,000 594,800 (85,900) Total liabilities and equities (1.836,000) 837,600 24.0