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 $6.00 per share both before and after the acquisition by Holland. Zeeland's acquisition date balance sheet follows:

Current assets$16,300Liabilities$246,500Property and equipment (net)250,300Common stock100,000Patents219,900Retained earnings140,000$486,500$486,500

On January 1, 2020, Holland assessed the carrying amount of Zeeland's equipment (5-year remaining life) to be undervalued by $44,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $307,400. 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:

HollandZeelandSales$(512,400)$(451,500)Cost of goods sold260,000211,500Depreciation expense64,00031,700Amortization expense16,30018,700Other operating expenses61,20056,600Equity in Zeeland earnings(56,076)0Separate company net income$(166,976)$(133,000)Retained earnings 1/1$(822,500)$(358,600)Net income(166,976)(133,000)Dividends declared50,00030,000Retained earnings 12/31$(939,476)$(461,600)Current assets$127,300$104,500Investment in Zeeland625,5120Property and equipment (net)860,000282,000Patents153,600179,500Total assets$1,766,412$566,000Liabilities$(506,936)$(4,400)Common stock?Holland(320,000)0Common stock?Zeeland0(100,000)Retained earnings 12/31(939,476)(461,600)Total liabilities and owners equity$(1,766,412)$(566,000)

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

1. Compute the amount of goodwill recognized in Holland's acquisition of Zeeland and the allocation of goodwill to the controlling and noncontrolling interest.
2. Show how Holland determined its December 31, 2021, Investment in Zeeland account balance.
3. Prepare worksheet to determine the amounts that should appear on Holland's December 31, 2021, consolidated financial statements.

Amount 31. Goodwill 30,540 X Controlling Interest NCI 32. Goodwill allocation S 205, 160 X 3.440 Amount b. Initial Value 480,000 Change in Zeeland's RE 192,860 Excess amortization (47,448) Investment in Zeeland 625,512Consolidation Entries Noncontrolling Consolidated Accounts Holland Zeeland Debit Credit Interest Totals Sales 3 (512.400) $ (451,500) (983.900) Cost of goods sold 280.000 211.500 471.500 Depreciation expense 84.000 31.700 8.800 104.500 Amortization expense 18,300 18,700 30.740 05.740 Other operating expenses 31.200 58.800 117.800 Equity in Zeeland earnings (58.076) 58.076 Separate company net income 3 (168.978) $ (133,000] Consolidated net income 0 5 (204.360) Noncontrolling interest in CNI (37.384) 30 37.384 Controlling interest net income 3 (186.976) x Retained earnings 1/1 3 (822.500) 3 (358.600] 358.800 (822.500) Net income (168.976) (133,000] 133,000 (x (168.978) Dividends declared 50,000 30,000 0 X OX 50.000 Retained earnings 12/31 $ (939,476) $ (461,600) (879.476) * Current assets 127.300 3 104.500 231.800 Investment in Zeeland, Inc 825.512 0 825.512 (0 Property and equipment (net) 860,000 282,000 0 1.142.000 ( Patents 153,600 179.500 0 X 333.100 0 Goodwill Ox Total assets $ 1.768.412 586.000 2.332.412 03 Liabilities (508.936) (4.400] 0 0 (511.338) Common stock (320,000) (100,000) O 0 (420.000) 23 Noncontrolling interest OX 0 x OX Retained earnings 12/31 (939.476) (461.600) (1.401.076) * Total liabilities and equities (1.768.412) $ (568.000) $ 587.210 0 (2.332.412) (60