On January 1, 2017, 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 $7.00 per share both before and after the acquisition by Holland Zeeland's acquisition date balance sheet follows Current assets Property and equipment (net) Patent $16, Liabilities 242,eee 185,95 522,eee 2, Comn stock 216,650 Retained earnings On January 1, 2017, Holland assessed the carrying amount of Zeeland's equipment (5-year remaining life) to be undervalued by $47,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $362,100. 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: Hol1and Ieeland Sales Cost of gcods sold Depreciation expense Amortization expense other operating expenses Equity in Zeeland earning:s (547,993) 277, PEE 68,5EE 16,E55 (448, 5e) 218,560 32 5 57,565 (13a,eee) (355,580) 5,634 Separate company net income (175,934) Retained earnings 1/1 Net income Dividends declared $(822,253) $ 175,934) 50,GEE (13, Retained earnings 12/31 $(948,134) $ (455,553) Current assets Inuest ment in Ieeland Property and equipment (net) Patent $127,680 $101,580 587,568 857,8E0 279,9E0 171.55 Total assets $ 1,724,568 $552,88e Liabilities Comon stock Holland Comon stock Ieeland Retained earnings 12/31 $(456,434) (329,) (1,5) (18e,8e0) (948,134)4EPE9 Total liabilities and owners equity $01,724,5E8)(552,95) At year-end, there were no intra-entity receivables or payables