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On January 1 , 2 0 2 3 , Holland Corporation paid $ 7 per share to a group of Zeeland Corporation shareholders to acquire
On January Holland Corporation paid $ per share to a group of Zeeland Corporation shareholders to acquire shares Required:
a Compute the amount of goodwill recognized in Holland's acquisition of Zeeland.
a Show the allocation of goodwill to the controlling and noncontrolling interest.
b Show how Holland determined Its December Investment in Zeeland account balance.
c Prepare a worksheet to determine the amounts that should appear on Holland's December consolldated financial
statements.
Complete this question by entering your answers in the tabs below.
a Compute the amount of goodwill recognized in Holland's acquisition of Zeeland.
a Show the allocation of goodwill to the controlling and noncontrolling interest.
b Show how Holland determined its December Investment in Zeeland account balance.
Note: Negative amounts should be shown with a minus sign.
b Change in Zeeland's Retained earnings
of Zeeland's outstanding voting stock, representing a percent ownership interest. The remalning shares of Zeeland
continued to trade in the market close to its recent average of $ per share both before and after the acquisition by Holland.
Zeeland's acquisition date balance sheet follows:
On January Holland assessed the carrying amount of Zeeland's equipment year remaining life to be undervalued by
$ Holland also determined that Zeeland possessed unrecorded patents year remaining life worth $ Zeeland's
acquisitiondate falr values for Its current assets and llabilitles were equal to thelr carrying amounts. Any remalning excess of Zeeland's
acquisitiondate falr value over its book value was attributed to goodwill.
The companles' financlal statements for the year ending December follow:
At yearend, there were no intraentity recelvables or payables.
Required:
a Compute the amount of goodwill recognized in Holland's acquisition of Zeeland.
a Show the allocation of goodwill to the controlling and noncontrolling interest.
b Show how Holland determined its December Investment In Zeeland account balance.
c Prepare a worksheet to determine the amounts that should appear on Holland's December consolidated financlal
statements.
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