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 $5.00 per share both before and after the acquisition by Holland. Zeeland's acquisition date balance sheet follows: Current assets Property and equipment (net) Patents $ 16,200 210,20 218,600 5 445, eee Liabilities Common stock Retained earnings $ 245,000 100, eee 100,000 $445, eee on January 1, 2020, Holland assessed the carrying amount of Zeeland's equipment (5-year remaining life) to be undervalued by $45,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $244,800. 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, 2021, follow, Sales Cost of goods sold Depreciation expense Amortization expense other operating expenses Equity in Zeeland earnings Holland $ (524,100) 265,900 65,500 16,200 60,800 (59,112) Zeeland $ (450,500) 211,000 31,800 18,800 56,900 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 $5.00 per share both before and after the acquisition by Holland. Zeeland's acquisition date balance sheet follows: Current assets Property and equipment (net) Patents $ 16,200 210,20 218,600 5 445, eee Liabilities Common stock Retained earnings $ 245,000 100, eee 100,000 $445, eee on January 1, 2020, Holland assessed the carrying amount of Zeeland's equipment (5-year remaining life) to be undervalued by $45,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $244,800. 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, 2021, follow, Sales Cost of goods sold Depreciation expense Amortization expense other operating expenses Equity in Zeeland earnings Holland $ (524,100) 265,900 65,500 16,200 60,800 (59,112) Zeeland $ (450,500) 211,000 31,800 18,800 56,900