On January $1,2023,$ Holland Corporation paid $$8$ per share to a group of Zeeland Corporation shareholders to acquire $60,000$ shares of Zeeland$$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 $$6\mathrm{.}50$ per share both before and after the acquisition by Holland. Zeeland$$s acquisition date balance sheet follows:

Current assets $ $15,400$ Liabilities $ $233,000$

Property and equipment $($net$)269,400$ Common stock $100,000$

Patents $208,200$ Retained earnings $160,000$

$ $493,000$ $ $493,000$

On January $1,2023,$ Holland assessed the carrying amount of Zeeland$$s equipment $(5-$year remaining life$)$ to be undervalued by $$53,000.$ Holland also determined that Zeeland possessed unrecorded patents $(10-$year remaining life$)$ worth $$327,200.$ Zeeland$$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 $ $(617,700)$ $ $(442,500)$

Cost of goods sold $313,100207,000$

Depreciation expense $77,50032,600$

Amortization expense $15,40019,600$

Other operating expenses $57,60059,300$

Equity in Zeeland earnings $(48,408)0$

Separate company net income $ $(202,508)$ $ $(124,000)$

Retained earnings, $1/1$ $ $(821,600)$ $ $(334,300)$

Net income $(202,508)(124,000)$

Dividends declared $50,00030,000$

Retained earnings, $12/31$ $ $(974,108)$ $ $(428,300)$

Current assets $ $126,400$ $ $95,500$

Investment in Zeeland $588,9960$

Property and equipment $($net$)851,000273,000$

Patents $151,800161,500$

Total assets $ $1,718,196$ $ $530,000$

Liabilities $ $(424,088)$ $ $(1,700)$

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

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

Retained earnings, $12/31(974,108)(428,300)$

Total liabilities and owners' equity $ $(1,718,196)$ $ $(530,000)$

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.