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 $ $15,000$ Liabilities $ $227,000$

Property and equipment $($net$)209,000$ Common stock $100,000$

Patents $203,000$ Retained earnings $100,000$

$ $427,000$ $ $427,000$

On January $1,2023,$ Holland assessed the carrying amount of Zeeland$$s equipment $(5-$year remaining life$)$ to be undervalued by $$65,000.$ Holland also determined that Zeeland possessed unrecorded patents $(10-$year remaining life$)$ worth $$226,600.$ Zeeland$$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 $ $(757,500)$ $ $(438,500)$

Cost of goods sold $384,000205,000$

Depreciation expense $95,00033,000$

Amortization expense $15,00020,000$

Other operating expenses $56,00060,500$

Equity in Zeeland earnings $(50,604)0$

Separate company net income $ $(258,104)$ $ $(120,000)$

Retained earnings, $1/1$ $ $(821,200)$ $ $(323,500)$

Net income $(258,104)(120,000)$

Dividends declared $50,00030,000$

Retained earnings, $12/31$ $ $(1,029,304)$ $ $(413,500)$

Current assets $ $126,000$ $ $91,500$

Investment in Zeeland $565,3080$

Property and equipment $($net$)847,000269,000$

Patents $151,000157,500$

Total assets $ $1,689,308$ $ $518,000$

Liabilities $ $(340,004)$ $ $(4,500)$

Common stock$$Holland $(320,000)0$

Common stock$$Zeeland $0(100,000)$

Retained earnings, $12/31(1,029,304)(413,500)$

Total liabilities and owners' equity $ $(1,689,308)$ $ $(518,000)$

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.