On January 1, 2020, Holland Corporation paid $7 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 Property and equipment (net) Patents 15,20 249,200 205,000 470,000 Liabilities Common stock Retained earnings $ 230,000 100,000 140,000 $470,000 On January 1, 2020, Holland assessed the carrying amount of Zeeland's equipment (5-year remaining life) to be undervalued by $67,000 Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $283,900. Zeeland's acquisition-date fair values for its current essets 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, 2021, follow: Sales Cost of goods sold Depreciation expense Amortization expense Other operating expenses Equity in Zeeland earnings Separate company net income Retained earnings 1/1 Net income Dividends declared Hetained earnings 12/31 Current assets Investment in Zeeland Property and equipment (net) Patents Total assets Liabilities Helland S (780,900) Zeeland $ (440,500) 98,000 15,200 (48,126) 206,000 32,800 $ (263,226) (122,000) 1 (821,400) (263,226) 10,000 10,000 $(1,034,626) $ (420,900) $ 120,2001 93,500 $524,000 Common stock Helland Comeon stock-Zeeland 1 (110,306) 1 (1,100) (120,000) (1,034,626) (100,000) (420,900) $(1,664,992) 1 (524,000) Metained earnings 12/11 Total liabilities and owners equity At year-end, there were no intra-entity receivables or payables. Show less & 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, 2021, Investment in Zeeland account balance. (Negative amounts should be shown with a minus sign.) Req A and B Red C a1. Goodwil Amount $ 69,100 Controlling interest NCI 2. Goodwill allocation 66.4605 Initial Value 3,640 Amount $ 420.000 Change in Zeeland's RE Excess amortization Investment in Zeeland $420,000 R. Prepare a worksheet to determine the amounts that should appear on Holland's December 31, 2021, 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. Input all amounts as positive values.) HOLLAND CORPORATION AND ZEELAND CORPORATION Consolidation Worksheet For Year Ending December 31, 2021 Sales Accounts Holland Zeeland Debit Consolidation Entries Credit Noncontrolling Consolidated Interest Totale $ (780,900) $ (440,500) 395.000 206.000 98,000 32.000 15.200 19,000 56.000 59.900 (48.126) 0 Cost of goods sold Depreciation expense Amortization expense Other operating expenses Equity in Zeeland earings Separate company net income Consolidated net income Noncontrolling interest in CN Controlling interest net income Retained earnings 1/1 Net income Dividends declared Retained earnings 12/31 Currant assets $ (283,226) $ (122.000) $ (821,400) $ (328.900) (263,226) 50,000 (122.000) 30,000 $11,034,626) S (420.900) 93.500 126,200 $ Investment in Zooland, Inc 638,392 Property and equipment (net) 849,000 271,000 Patents 151,400 150.500 Goodwill Total assets Liabili Common sack Noncontrolling interest Ratained namings 12/31 o 0 $ 1,664,992 $ 24,000 (010066) (3,100) (320,000) (100,000) (1,034,620) (420.000) Total liatsies and equites $ (1,664,992) S (524.000) S Show less