NEED HELP WITH PART C

NEED HELP WITH PART C

NEED HELP WITH PART C

AutoSave OFF os5E Document19 Home Insert Draw Design Layout References Mailings Review View Table Design Layout Tell me Share Comments X inherit 9 " AA Aa A ES AL AaBbCcDdEe AaBbCcDdEe AaBbCcDc AaBbCcDdEt AaBb AalbCcDdEx AaBbCcDdEe Paste U vab X, X ADA , Normal Subtitle No Spacing Heading 1 Title Heading 2 V Subtle Emph.. Dictate Styles Pane 7 7 1 On January 1, 2020, Holland Corporation paid $9 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 $8.00 per share both before and after the acquisition by Holland. Zeeland's acquisition date balance sheet follows: Current assets $ 14,300 Liabilities $216,500 Property and equipment (net) 328,300 Common stock 100,000 Patents 193,900 Retained earnings 220,000 $536,500 $536,500 N m On January 1, 2020, Holland assessed the carrying amount of Zeeland's equipment (5-year remaining life) to be undervalued by $58,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $300,600. 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: Holland Zeeland Sales $ (675,600) $(431,500) Cost of goods sold 342,700 201,500 Depreciation expense 84,500 33,700 Amortization expense 14,300 20,700 Other operating expenses 53,200 62,600 Equity in Zeeland earnings (42,804) 0 Separate company net income $ (223,704) $(113,000) Retained earnings 1/1 Net income Dividends declared Retained earnings 12/31 $ (820,500) $(304,600) (223,704) (113,000) 50,000 30,000 $ (994,204) $(387,600) Current assets Investment in Zeeland Property and equipment (net) Patents Total assets $ 125,300 $ 84,500 590,568 0 0 840,000 262,000 149,600 150,500 $ 1,705,468 $ 497,000 Liabilities Common stock-Holland Common stock Zeeland Retained earnings 12/31 Total liabilities and owners equity $ (391,264) $ (9,400) (320,000) 0 0 (100,000) (994,204) (387,600) $(1,705,468) S(497,000) At year-end, there were no intra-entity receivables or payables. a oa b. c. Compute the amount of goodwill recognized in Holland's acquisition of Zeeland and the allocation of goodwill to the controlling and noncontrolling interest. Show how Holland deterruined its December 31, 2021, Investment in Zeeland account balance. Prepare a worksheet to determine the amounts that should appear on Holland's December 31, 2021, consolidated financial statements. Page 1 of 2 372 words LE English (United States) O Focus 5 - + 116%