On January 1, 2020, Holland Corporation paid $8 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 $7.00 per share both before and after the acquisition by Holland. Zeeland's acquisition date balance sheet follows: Current assets Property and equipment (net) Patents $ 15,500 289,500 209,500 Liabilities Common stock. Retained earnings $ 234,500 100,000 180,000 $ 514,500 $ 514,500 On January 1, 2020, Holland assessed the carrying amount of Zeeland's equipment (5-year remaining life) to be undervalued by $52,000, Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $360,000. 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 Separate company net income Retained earnings 1/1 Net income Dividends declared Retained earnings 12/31 Holland $ (606,000) 307,200 Zeeland $ (443,500) 207,500 76,000 15,500 58,000 (47,160) $ (196,460) $ (821,700) (196,460) 50,000 32,500 19,500 59,000 e $ (125,000) $ (337,000) (125,000) 30,000 Current assets Investment in Zeeland Property and equipment (net) Patents Total assets Liabilities Common stock-Holland Common stock-Zeeland Retained earnings 12/31 Total liabilities and owners equity $ (968,160) $ (432,000) $ 126,500 $ 575,520 96,500 e 852,000 274,000 152,000 166,500 $ 537,000 $ (5,000) e e (100,000) (432,000) $ (537,000) $ 1,706,020 $ (417,860) (320,000) (968,160) $(1,706,020) 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, 2021, Investment in Zeeland account balance. c. Prepare a worksheet to determine the amounts that should appear on Holland's December 31, 2021, consolidated financial statements. Complete this question by entering your answers in the tabs below. Req A and B Req C 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 Show more Amount a1. Goodwill Controlling Interest NCI a2 Goodwill allocation Amount b. Initial Value Change in Zeeland's RE Excess amortization Investment in Zeeland $ 0 HOLLAND CORPORATION AND ZEELAND CORPORATION Consolidation Worksheet For Year Ending December 31, 2021 Sales Accounts 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 income Retained earnings 1/1 Net income Dividends declared Retained earnings 12/31 Current assets Holland Zeeland $ (606,000) $ (443,500) 307,200 207,500 76,000 32,500 15,500 19,500 58,000 59,000 (47,160) 0 $ (196,460) $ (125,000) $ (821,700) $ (337,000) (196,460) 50,000 (125,000) 30,000 $ (968,160) $ (432,000) S 126.500 S 96.500 Consolidation Entries Debit Credit Noncontrolling Interest Consolidated Totals Current assets Investment in Zeeland, Inc Property and equipment (net) Patents Goodwill Total assets Liabilities Common stock Noncontrolling interest Retained earnings 12/31 Total liabilities and equities S 126,500 $ 96,500 575,520 0 852,000 274,000 152,000 166,500 0 0 $ 1,706,020 $ 537,000 (417,860) (320,000) (5,000) (100,000) (968,160) (432,000) $ (1,706,020) $ (537,000) $ 0 $ 0 < Req A and B Reg C >