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 $$5\mathrm{.}00$ per share both before and after the acquisition by Holland. Zeeland$$s acquisition date balance sheet follows:

Current assets $ $14,700$ Liabilities $ $222,500$

Property and equipment $($net$)208,700$ Common stock $100,000$

Patents $199,100$ Retained earnings $100,000$

$ $422,500$ $ $422,500$

On January $1,2023,$ Holland assessed the carrying amount of Zeeland$$s equipment $(5-$year remaining life$)$ to be undervalued by $$62,000.$ Holland also determined that Zeeland possessed unrecorded patents $(10-$year remaining life$)$ worth $$226,900.$ Zeeland$$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 $31,2024,$ follow:

Account Holland Zeeland

Sales $ $(722,400)$ $ $(435,500)$

Cost of goods sold $366,300203,500$

Depreciation expense $90,50033,300$

Amortization expense $14,70020,300$

Other operating expenses $54,80061,400$

Equity in Zeeland earnings $(49,146)0$

Separate company net income $ $(245,246)$ $ $(117,000)$

Retained earnings, $1/1$ $ $(820,900)$ $ $(315,400)$

Net income $(245,246)(117,000)$

Dividends declared $50,00030,000$

Retained earnings, $12/31$ $ $(1,016,146)$ $ $(402,400)$

Current assets $ $125,700$ $ $88,500$

Investment in Zeeland $559,3320$

Property and equipment $($net$)844,000266,000$

Patents $150,400154,500$

Total assets $ $1,679,432$ $ $509,000$

Liabilities $ $(343,286)$ $ $(6,600)$

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

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

Retained earnings, $12/31(1,016,146)(402,400)$

Total liabilities and owners' equity $ $(1,679,432)$ $ $(509,000)$

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.