On January 1, 2017, Holland Corporation paid $7 per share to a group of Zeeland Corporation shareholders to acquire 60,000 shares of Zeelands 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 $5.50 per share both before and after the acquisition by Holland. Zeelands acquisition date balance sheet follows:

Current assets	$	14,400		Liabilities	$	218,000
Property and equipment (net)		228,400		Common stock		100,000
Patents		195,200		Retained earnings		120,000
	$	438,000			$	438,000

On January 1, 2017, Holland assessed the carrying amount of Zeelands equipment (5-year remaining life) to be undervalued by $59,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $261,600. Zeelands acquisition-date fair values for its current assets and liabilities were equal to their carrying amounts. Any remaining excess of Zeelands acquisition-date fair value over its book value was attributed to goodwill.

The companies financial statements for the year ending December 31, 2018, follow:

	Holland				Zeeland
Sales	$	(687,300	)		$	(432,500	)
Cost of goods sold		348,600				202,000
Depreciation expense		86,000				33,600
Amortization expense		14,400				20,600
Other operating expenses		53,600				62,300
Equity in Zeeland earnings		(45,624	)			0
Separate company net income	$	(230,324	)		$	(114,000	)
Retained earnings 1/1	$	(820,600	)		$	(307,300	)
Net income		(230,324	)			(114,000	)
Dividends declared		50,000				30,000
Retained earnings 12/31	$	(1,000,924	)		$	(391,300	)
Current assets	$	125,400			$	85,500
Investment in Zeeland		537,228				0
Property and equipment (net)		841,000				263,000
Patents		149,800				151,500
Total assets	$	1,653,428			$	500,000
Liabilities	$	(332,504	)		$	(8,700	)
Common stock - Holland		(320,000	)			0
Common stock - Zeeland		0				(100,000	)
Retained earnings 12/31		(1,000,924	)			(391,300	)
Total liabilities and owners equity	$	(1,653,428	)		$	(500,000	)

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

1. Compute the amount of goodwill recognized in Hollands acquisition of Zeeland and the allocation of goodwill to the controlling and noncontrolling interest.

2. Show how Holland determined its December 31, 2018, Investment in Zeeland account balance.

3. Prepare a worksheet to determine the amounts that should appear on Hollands December 31, 2018, consolidated financial statements.