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 $ 16,000 Liabilities Property and equipment (net) Patents: 290,000 216,000 Common stock Retained earnings $ 242,000 100,000 180,000 $ 522,000 $ 522,000 On January 1, 2020, Holland assessed the carrying amount of Zeeland's equipment (5-year remaining life) to be undervalued by $47,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $362,100. 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 Current assets Investment in Zeelandi Holland $ (547,500) 277,700 Zeeland $(448,500) 210,000 68,500 32,000 16,000 19,000. 60,000 57,500 (50,634) 0 $ (175,934) $(130,000) $ (822,200) (175,934) 50,000 $ (948,134) $ 127,000 587,560 $ (350,500) (130,000) 30,000 $(450,500) $101,500