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 $5.50 per share both before and after the acquisition by Holland. Zeeland's acquisition date balance sheet follows: Current assets Property and equipment (net) Patents $ 16,100 230,100 217,300 $ 463,500 Liabilities Common stock Retained earnings $ 243,500 100,000 120,000 5463,500 On January 1, 2017, Holland assessed the carrying amount of Zeeland's equipment (5-year remaining life) to be undervalued by $46,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $275,200. 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, 2018, follow: Sales Cost of goods sold Depreciation expense Amortization expense Other operating expenses Equity in Zeeland earnings Separate company net income Holland $(535,800) 271,800 67,880 16,100 60,400 (56,568) S (177,068) Zeeland $ (449,500) 210,500 31,990 18,900 57,200 $ (131,000) Retained earnings 1/1 Net income Dividends declared Retained earnings 12/31 $(822,300) (177,068) 50,000 $(949, 368) $ (353,200) (131,000) 30,000 $ (454,200) Current assets Investment in Zeeland Property and equipment (net) Patents Total assets $ 127,100 576,456 858,000 153,200 $ 1,714,756 $ 102,500 @ 280,000 177,500 $ 560,000 $ (445,388) (320,000) $ (5,800) Liabilities Common stock - Holland Common stock - Zeeland Retained earnings 12/31 Total liabilities and owners equity (949,368) $(1,714,756) (100,000) (454,200) $ (560,000) At year-end, there were no intro-entity receivables or payables a. Compute 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. c. Prepare a worksheet to determine the amounts that should appear on Holland's December 31, 2018, consolidated financial statements Answer is not complete. Complete this question by entering your answers in the tabs below. Req A and B Regc a. Compute the amount of goodwill recognized in Holland's acquisition of Zeeland and the allocation of goodwill to the b. Show how Holland determined its December 31, 2018, Investment in Zeeland account balance. Amount a1 Goodwill Controlling Interest NCI a2 Goodwill allocation Amount b Investment in Zeeland 12/31/18 ROGA Regc > 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 should be entered with a minus sign.) Show less HOLLAND CORPORATION AND ZEELAND CORPORATION Consolidation Worksheet For Year Ending December 31, 2018 Consolidation Entries Noncontrolling Holland Zeeland Debit Credit Interest $ (535,800) $ (449,500) 271,800 210,500 67,000 31,900 9,200 16,100 18,900 27,520 60,400 57,200 (56,568) 0 56,568 S (177,068) $ 131,000) Consolidated Totals $ (985,300) 482,300 109,100 62,520 117,600 0 is (214,780) s (214.780) Accounts Sales Cost of goods sold Depreciation expense Amortization expense Other operating expenses Equity in Zeeland earings Separate company net income Consolidated net income Noncontrolling interest in CNI Controlling interest net income Retained earnings, 1/1/18 Net income Dividends declared Retained earnings, 12/31 Current assets Investment in Zeeland, Inc Property and equipment (net) Patents Goodwill Total assets Liabilis Common stock Noncontrolling interest Retained earnings 12/31 Total liabilities and equities $ (353,200) (131,000) 30,000 S (454,200) $ 102,500 0 0 $ 822,300) (177,068) 50,000 $ (949,368) $ 127,100 576,456 858,000 153,200 0 $ 1,714,756 (445,388) (320,000) 280,000 177,500 0 $ 560,000 (5,800) (100,000) 0 (949,368) 70714756 (454,200) S (500,000) $93.238 $ 0 0