On January 1, 2017, Holland Corporation paid $8 per share to a group of Zeeland Corporation shareholders to acquire 60,000 shares of Zeelands 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. Zeelands acquisition date balance sheet follows:

Current assets	$	14,900		Liabilities	$	225,500
Property and equipment (net)		288,900		Common stock		100,000
Patents		201,700		Retained earnings		180,000
	$	505,500			$	505,500

On January 1, 2017, Holland assessed the carrying amount of Zeelands equipment (5-year remaining life) to be undervalued by $64,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $345,200. 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	$	(745,800	)		$	(437,500	)
Cost of goods sold		378,100				204,500
Depreciation expense		93,500				33,100
Amortization expense		14,900				20,100
Other operating expenses		55,600				60,800
Equity in Zeeland earnings		(43,008	)			0
Separate company net income	$	(246,708	)		$	(119,000	)
Retained earnings 1/1	$	(821,100	)		$	(320,800	)
Net income		(246,708	)			(119,000	)
Dividends declared		50,000				30,000
Retained earnings 12/31	$	(1,017,808	)		$	(409,800	)
Current assets	$	125,900			$	90,500
Investment in Zeeland		561,096				0
Property and equipment (net)		846,000				268,000
Patents		150,800				156,500
Total assets	$	1,683,796			$	515,000
Liabilities	$	(345,988	)		$	(5,200	)
Common stock - Holland		(320,000	)			0
Common stock - Zeeland		0				(100,000	)
Retained earnings 12/31		(1,017,808	)			(409,800	)
Total liabilities and owners equity	$	(1,683,796	)		$	(515,000	)

a. Compute the amount of goodwill recognized in Hollands 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. Complete worksheet

Noncontrolling Interest Consolidated Totals Accounts Sales Cost of goods sold Depreciation expense Amortization expense Other operating expenses Equity in Zeeland earnings Separate company net income Consolidated net income Noncontrolling interest in CNI Controlling interest net income Retained earnings, 1/1/18 Net income Dividends declared Consolidation Worksheet For Year Ending December 31, 2018 Consolidation Entries Holland Zeeland Debit Credit $ (745,800) $ (437,500) 378,100 204,500 93,500 33,100 14,900 20,100 55,600 60,800 (43,008) $ (246,708) $ (119,000) $ 0 $ (821,100) (246,708) 50,000 $ (320,800) (119,000) 30,000 $ (409,800) $ 90,500 Retained earnings, 12/31 $ O Current assets Investment in Zeeland, Inc Property and equipment (net) Patents Goodwill Total assets Liabilities Common stock Noncontrolling interest Retained earnings, 12/31 4047 80g $ 125,900 561,096 846,000 150,800 0 $ 1,683,796 (345,988) (320,000) 268,000 156,500 0 515,000 (5,200) (100,000) $ (1,017,808) (409,800) $ (515,000) Total liabilities and equities (1.683.796) $ 0 Noncontrolling Interest Consolidated Totals Accounts Sales Cost of goods sold Depreciation expense Amortization expense Other operating expenses Equity in Zeeland earnings Separate company net income Consolidated net income Noncontrolling interest in CNI Controlling interest net income Retained earnings, 1/1/18 Net income Dividends declared Consolidation Worksheet For Year Ending December 31, 2018 Consolidation Entries Holland Zeeland Debit Credit $ (745,800) $ (437,500) 378,100 204,500 93,500 33,100 14,900 20,100 55,600 60,800 (43,008) $ (246,708) $ (119,000) $ 0 $ (821,100) (246,708) 50,000 $ (320,800) (119,000) 30,000 $ (409,800) $ 90,500 Retained earnings, 12/31 $ O Current assets Investment in Zeeland, Inc Property and equipment (net) Patents Goodwill Total assets Liabilities Common stock Noncontrolling interest Retained earnings, 12/31 4047 80g $ 125,900 561,096 846,000 150,800 0 $ 1,683,796 (345,988) (320,000) 268,000 156,500 0 515,000 (5,200) (100,000) $ (1,017,808) (409,800) $ (515,000) Total liabilities and equities (1.683.796) $ 0