On January 1, 2017, Holland Corporation paid $8 per share to Zeeland Corp shareholders to acquire 60k shares of Zeelands outstanding voting stock, representing a 60% ownership interest. The remaining 40k shares of Zeeland continued to trade avg of $7.00 per share both before and after the acquisition by Holland. Zeelands acquisition

Current assets	$	15,500		Liabilities	$	234,500
Property and equipment (net)		289,500		Common stock		100,000
Patents		209,500		Retained earnings		180,000
	$	514,500			$	514,500

On January 1, 2017, Holland assessed the carrying amount of Zeelands equipment (5-year remaining life) to be undervalued by $52,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $360,000. 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	$	(606,000	)		$	(443,500	)
Cost of goods sold		307,200				207,500
Depreciation expense		76,000				32,500
Amortization expense		15,500				19,500
Other operating expenses		58,000				59,000
Equity in Zeeland earnings		(47,160	)			0
Separate company net income	$	(196,460	)		$	(125,000	)
Retained earnings 1/1	$	(821,700	)		$	(337,000	)
Net income		(196,460	)			(125,000	)
Dividends declared		50,000				30,000
Retained earnings 12/31	$	(968,160	)		$	(432,000	)
Current assets	$	126,500			$	96,500
Investment in Zeeland		575,520				0
Property and equipment (net)		852,000				274,000
Patents		152,000				166,500
Total assets	$	1,706,020			$	537,000
Liabilities	$	(417,860	)		$	(5,000	)
Common stock - Holland		(320,000	)			0
Common stock - Zeeland		0				(100,000	)
Retained earnings 12/31		(968,160	)			(432,000	)
Total liabilities and owners equity	$	(1,706,020	)		$	(537,000	)

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

HOLLAND CORPORATION AND ZEELAND CORPORATION Consolidation Worksheet For Year Ending December 31, 2018 Consolidation Entries Noncontrolling Consolidated Accounts Holland Zeeland Debit Credit Interest Totals Sales $(606,000) $(443,500) $(1,049,500) Cost of goods sold 307,200 207,500 514,700 Depreciation expense 76,000 32,500 Amortization expense 15,500 19,500 Other operating expenses 58,000 59,000 117,000 Equity in Zeeland earnings (47,160) 47,160 Separate company net $(196,460) $(125,000) income Consolidated net income $(417,800) Noncontrolling interest in CNI Controlling interest net $(417,800) income Retained earnings, 1/1/18 $(821,700) $(337,000) Net income (196,460) (125,000) Dividends declared 50,000 30,000 Retained earnings, 12/31 $(968, 160) $(432,000) Current assets $126,500 $96,500 Investment in Zeeland, Inc 575,520 Property and equipment 852,000 274,000 (net) Patents 152,000 166,500 Goodwill Total assets $1,706,020 $537,000 Liabilities (417,860)| (5,000) Common stock (320,000) (100,000) Noncontrolling interest Retained earnings, 12/31 (968,160) (432,000) Total liabilities and equities $(1,706,020) $(537,000)| $47,160 $0) OV