On January 1, 2017, Holland Corporation paid $9 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 $7.50 per share both before and after the acquisition by Holland Zeeland's acquisition date balance sheet follows Current assets Property and equipment (net) Patents $ 15,800 309,800 213, 400 $ 539,000 Liabilities Common stock Retained earnings $ 239,000 100,000 200,000 5 539,000 On January 1, 2017 Holland assessed the carrying amount of Zeeland's equipment (5 year remaining life) to be undervalued by $49,000 Holland also determined that Zeeland possessed unrecorded patents (10 year remaining fife) worth $391,500 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. Zeeland $ (446,500) 209,000 32,260 Sales Cost of goods sold Depreciation expense Amortization expense Other operating expenses Equity in Zeeland earnings Separate company net income Holland $(570,900) 289,500 71,500 15,800 59,200 (47,430) $ (182,330) 19,200 58,100 8 $ (128,000) Retained earnings 1/1 Net income Dividends declared Retained earnings 12/31 $ (822,889) (182,330) 50,000 $ 954,330) $(345,100) (128,000) 30,000 $ 143, 100) $ 99,500 Current assets Investment in Zeeland Property and equipment (net) Patents Total assets $ 126,800 627,120 855,000 152,600 $ 1,761,520 277,000 169,500 $546,000 Liabilities Common stock - Holland Common stock - Zeeland Retained earnings 12/31 Total liabilities and owners equity $ (487,190) (320, 000) (954, 330) $(1,761,520) $ (2,900) 0 (100,000) (443, 100) $ (546,000) At year-end, there were no intra entity receivables or payables a. Compute the amount of goodwill recognized in Holland's 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. Prepare a worksheet to determine the amounts that should appear on Holland's De 31, 2018, consolidated financial statements Complete this question by entering your answers in the tabs below. Reg A and B Req a. Compute the amount of goodwill recognized in Holland's 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. Amount a1 Goodwill Controlling Interest NCI a2 Goodwill allocation Amount b Investment in Zeeland 12/31/18 Prepare a worksheet to determine the amounts that should appear on Holland's December 31, 2018, consolidated financial statements. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Amounts in the Debit and credit columns should be entered as positive, Negative amounts for the Noncontrolling Interest and Consolidated Totals columns should be entered with a minus sion.) Show less Noncontrolling Interest Consolidated Totals HOLLAND CORPORATION AND ZEELAND CORPORATION Consolidation Worksheet For Year Ending December 31, 2018 Consolidation Entries Holland Zeeland Debit Credit 5 (570,900) $ (446,500) 289,500 209,000 71,500 32,200 15,800 19,200 59,200 58.100 (47 430) 0 5 (182,330) 5 (128,000) 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 incomo Retained earnings 1/1/18 Net income Dividends declared Retained earnings, 12/31 Current assets Investment in Zeeland, Inc Property and equipment (net) Patents Goodwill Total assets Liabilities Common stock Noncontrolling interest Retained earnings 12/31 Totat liabilities and equities 5 (822.000) $ (345,100) (182330) (128,000) 50,000 30,000 $(954,330) S (443,100) 5 126,800 $ 99,500 627 120 0 855,000 277 000 152,600 160,500 0 0 $ 1,761,520 $ 545,000 (487190) (2.900) (320,000) (100,000) (954330) (443.100) 5 (1.761.520) 5 (546,000)