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 $6.50 per share both before and after the acquisition by Holland. Zeelands acquisition date balance sheet follows:

Current assets	$	15,400		Liabilities	$	233,000
Property and equipment (net)		269,400		Common stock		100,000
Patents		208,200		Retained earnings		160,000
	$	493,000			$	493,000

On January 1, 2017, Holland assessed the carrying amount of Zeelands equipment (5-year remaining life) to be undervalued by $53,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $327,200. 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	$	(617,700	)		$	(442,500	)
Cost of goods sold		313,100				207,000
Depreciation expense		77,500				32,600
Amortization expense		15,400				19,600
Other operating expenses		57,600				59,300
Equity in Zeeland earnings		(48,408	)			0
Separate company net income	$	(202,508	)		$	(124,000	)
Retained earnings 1/1	$	(821,600	)		$	(334,300	)
Net income		(202,508	)			(124,000	)
Dividends declared		50,000				30,000
Retained earnings 12/31	$	(974,108	)		$	(428,300	)
Current assets	$	126,400			$	95,500
Investment in Zeeland		588,996				0
Property and equipment (net)		851,000				273,000
Patents		151,800				161,500
Total assets	$	1,718,196			$	530,000
Liabilities	$	(424,088	)		$	(1,700	)
Common stock - Holland		(320,000	)			0
Common stock - Zeeland		0				(100,000	)
Retained earnings 12/31		(974,108	)			(428,300	)
Total liabilities and owners equity	$	(1,718,196	)		$	(530,000	)

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

1) Show how Holland determined its December 31, 2018, Investment in Zeeland account balance.

2) Prepare a worksheet to determine the amounts that should appear on Hollands December 31, 2018, consolidated financial statements.

HOLLAND CORPORATION AND ZEELAND CORPORATION Consolidation Worksheet For Year Ending December 31, 2018 Consolidation Entries Noncontrolling Consolidated Accounts Holland Zeeland DebitCredit Interest Totals Sales 617,700)(442,500 313,100207,000 77,500 32,600 5,40019,600 Cost of goods sold Depreciation expense Amortization expense Other operating expenses Equity in Zeeland earnings Separate company S net income Consolidated net income Noncontrolling interest in CNI Controlling interest net income Retained earnings, $ 57,60059,300 (48,408) 202,508) (124,000 821,600) (334,300 (202,508) (124,000) 50,000 30,000 Net income Dividends declared Retained earnings, $ 12/31 Current assets Investment in Zeeland, Inc Property and equipment (net Patents Goodwill 974,108) (428,300 $ 126,400$ 95,500 588,996 851,000 273,000 151,800 161,500 0 0 Total assets Liabilities Common stock Noncontrolling 1,718,196530,000 (424,088)(1,700) (320,000) (100,000) nterest Retained earnings, (974,108) (428,300) 12/31 Total liabilities and equities $ 0$0 1,718,196) (530,000