On January $1,2023,$ 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 $$5\mathrm{.}50$ per share both before and after the acquisition by Holland. Zeeland$$s acquisition date balance sheet follows:

Current assets $ $15,100$ Liabilities $ $228,500$

Property and equipment $($net$)229,100$ Common stock $100,000$

Patents $204,300$ Retained earnings $120,000$

$ $448,500$ $ $448,500$

On January $1,2023,$ Holland assessed the carrying amount of Zeeland$$s equipment $(5-$year remaining life$)$ to be undervalued by $$66,000.$ Holland also determined that Zeeland possessed unrecorded patents $(10-$year remaining life$)$ worth $$254,600.$ Zeeland$$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 $31,2024,$ follow:

Account Holland Zeeland

Sales $ $(769,200)$ $ $(439,500)$

Cost of goods sold $389,900205,500$

Depreciation expense $96,50032,900$

Amortization expense $15,10019,900$

Other operating expenses $56,40060,200$

Equity in Zeeland earnings $(49,404)0$

Separate company net income $ $(260,704)$ $ $(121,000)$

Retained earnings, $1/1$ $ $(821,300)$ $ $(326,200)$

Net income $(260,704)(121,000)$

Dividends declared $50,00030,000$

Retained earnings, $12/31$ $ $(1,032,004)$ $ $(417,200)$

Current assets $ $126,100$ $ $92,500$

Investment in Zeeland $551,9280$

Property and equipment $($net$)848,000270,000$

Patents $151,200158,500$

Total assets $ $1,677,228$ $ $521,000$

Liabilities $ $(325,224)$ $ $(3,800)$

Common stock$$Holland $(320,000)0$

Common stock$$Zeeland $0(100,000)$

Retained earnings, $12/31(1,032,004)(417,200)$

Total liabilities and owners' equity $ $(1,677,228)$ $ $(521,000)$

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

Required:

a$1.$ Compute the amount of goodwill recognized in Holland's acquisition of Zeeland.

a$2.$ Show the allocation of goodwill to the controlling and noncontrolling interest.

b$.$ Show how Holland determined its December $31,2024,$ Investment in Zeeland account balance.

c$.$ Prepare a worksheet to determine the amounts that should appear on Holland$$s December $31,2024,$ consolidated financial statements.