On January 1, 2017, 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 $5.00 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, 2017, 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, 2018, follow: Holland ZeelandSales $ (757,500 ) $ (438,500 )Cost of goods sold 384,000 205,000 Depreciation expense 95,000 33,000 Amortization expense 15,000 20,000 Other operating expenses 56,000 60,500 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 50,000 30,000 Retained earnings 12/31 $ (1,029,304 ) $ (413,500 ) Current assets $ 126,000 $ 91,500 Investment in Zeeland 565,308 0 Property and equipment (net) 847,000 269,000 Patents 151,000 157,500 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. I need the amount of goodwill recognized in Holland's acquisition of Zeeland and the allocation of goodwill to the controlling and noncontrolling interest.What Holland determined its December 31, 2018, Investment in Zeeland account balance.I need a worksheet to determine the amounts that should appear on Holland's December 31, 2018, consolidated financial statements. Req A and B: the amount of goodwill recognized in Holland's acquisition of Zeeland and the allocation of goodwill to the controlling and noncontrolling interest.b. Show how Holland determined its December 31, 2018, Investment in Zeeland account balance. a1Goodwill: AMOUNT. . a2.Goodwill allocation: controlling interest, NCI: b.Investment in Zeeland 12/31/18 AMOUNT

Chapter 4 Homework i Saved Prepare a worksheet to determine the amounts that should appear on Holland's December 31, 2018, consolidated financial statements. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Amounts in the Debit and Credit columns should be entered as positive. Negative amounts for the Noncontrolling Interest and Consolidated Totals columns 8.33 should be entered with a minus sign.) points Show less HOLLAND CORPORATION AND ZEELAND CORPORATION Consolidation Worksheet Book For Year Ending December 31, 2018 Consolidation Entries Noncontrolling Consolidated Accounts Holland Zeeland Debit Credit Interest Totals Print Sales $ (757,500) $ (438,500) $ (1,196,000) Cost of goods sold 384,000 205,000 589,000 Depreciation expense 95,000 33,000 References Amortization expense 15,000 20,000 Other operating expenses 56,000 50,500 Equity in Zeeland earnings (50,604) Separate company net income $ (258, 104) $ (120,000) Consolidated net income $ (607,000) Noncontrolling interest in CNI Controlling interest net income Retained earnings, 1/1/18 $ (821,200) $ (323,500) $ (607,000) Net income (258, 104) (120,000) Dividends declared 50,000 30,000 Retained earnings, 12/31 $ (1,029,304) $ (413,500) Current assets S $ 126,000 $ 91,500 Investment in Zeeland, Inc 565,308 0 Property and equipment (net) 847,000 269,000 Patents 151,000 157,500 Goodwill 0 Total assets $ 1,689,308 $ 518,000 $ Liabilities 340,004) (4,500) Common stock (320,000) (100,000) Noncontrolling interest Retained earnings, 12/31 (1,029,304) (413,500 Total liabilities and equities $ (1,689,308) $ (518,000) $ 0 $ 19 $ 0 Mc Graw Hill