On January 1, 2020, Holland Corporation paid $7 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 $5.50 per share both before and after the acquisition by Holland. Zeelands acquisition date balance sheet follows:

Current assets	$	15,100		Liabilities	$	228,500
Property and equipment (net)		229,100		Common stock		100,000
Patents		204,300		Retained earnings		120,000
	$	448,500			$	448,500

On January 1, 2020, Holland assessed the carrying amount of Zeelands equipment (5-year remaining life) to be undervalued by $66,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $254,600. 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, 2021, follow:

	Holland				Zeeland
Sales	$	(769,200	)		$	(439,500	)
Cost of goods sold		389,900				205,500
Depreciation expense		96,500				32,900
Amortization expense		15,100				19,900
Other operating expenses		56,400				60,200
Equity in Zeeland earnings		(49,404	)			0
Separate company net income	$	(260,704	)		$	(121,000	)
Retained earnings 1/1	$	(821,300	)		$	(326,200	)
Net income		(260,704	)			(121,000	)
Dividends declared		50,000				30,000
Retained earnings 12/31	$	(1,032,004	)		$	(417,200	)
Current assets	$	126,100			$	92,500
Investment in Zeeland		551,928				0
Property and equipment (net)		848,000				270,000
Patents		151,200				158,500
Total assets	$	1,677,228			$	521,000
Liabilities	$	(325,224	)		$	(3,800	)
Common stockHolland		(320,000	)			0
Common stockZeeland		0				(100,000	)
Retained earnings 12/31		(1,032,004	)			(417,200	)
Total liabilities and owners equity	$	(1,677,228	)		$	(521,000	)

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

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, 2021, Investment in Zeeland account balance. (Negative amounts should be shown with a minus sign.)

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			Amount
a1.	Goodwill
		Controlling Interest	NCI
a2.	Goodwill allocation
			Amount
b.	Initial Value
	Change in Zeelands RE
	Excess amortization
	Investment in Zeeland