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 $6.00 per share both before and after the acquisition by Holland. Zeeland's acquisition date balance sheet follows:

Current assets$14,500Liabilities$219,500Property and equipment (net)248,500Common stock100,000Patents196,500Retained earnings140,000$459,500$459,500

On January 1, 2017, Holland assessed the carrying amount of Zeeland's equipment (5-year remaining life) to be undervalued by $60,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $290,600. 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:HollandZeelandSales$(699,000)$(433,500)Cost of goods sold354,500202,500Depreciation expense87,50033,500Amortization expense14,50020,500Other operating expenses54,00062,000Equity in Zeeland earnings(44,364)0Separate company net income$(232,864)$(115,000)Retained earnings 1/1$(820,700)$(310,000)Net income(232,864)(115,000)Dividends declared50,00030,000Retained earnings 12/31$(1,003,564)$(395,000)Current assets$125,500$86,500Investment in Zeeland583,7280Property and equipment (net)842,000264,000Patents150,000152,500Total assets$1,701,228$503,000Liabilities$(377,664)$(8,000)Common stock - Holland(320,000)0Common stock - Zeeland0(100,000)Retained earnings 12/31(1,003,564)(395,000)Total liabilities and owners equity$(1,701,228)$(503,000)

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

1. Compute the amount of goodwill recognized in Holland's 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 Holland's December 31, 2018, consolidated financial statements.