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 $6.50 per share both before and after the acquisition by Holland. Zeeland's acquisition date balance sheet follows: Current assets Property and equipment (net) Patents $ 15,400 269,400 208,200 $ 493,000 Liabilities Common stock Retained earnings $ 233,000 100,000 160,000 $ 493,000 On January 1, 2020, Holland assessed the carrying amount of Zeeland's equipment (5-year remaining life) to be undervalued by $53,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $327,200. 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 i Holland $ (617,700) 313,100 77,500 15,400 57,600 (48,408) $ (202,508) $ (821,600) (202,508) 50,000 Zeeland $ (442,500) 207,000 32,600 19,600 59,300 0 $ (124,000) $ (334,300) (124,000) 30,000 Retained earnings 12/31 $ (974,108) $ (428,300) Current assets $ 126,400 $ 95,500 Investment in Zeeland 588,996 0 Property and equipment (net) 851,000 273,000 161 on