On January 1, 2020, Holland Corporation paid $8 per share to a group of Zeeland Corporation shareholders to acquire 60,000 shares of Zeelands 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. Zeelands acquisition date balance sheet follows:

Current assets$15,500Liabilities$234,500Property and equipment (net)289,500Common stock100,000Patents209,500Retained earnings180,000$514,500$514,500

On January 1, 2020, Holland assessed the carrying amount of Zeelands 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. Zeelands acquisition-date fair values for its current assets and liabilities were equal to their carrying amounts. Any remaining excess of Zeelands 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$(606,000)$(443,500)Cost of goods sold307,200207,500Depreciation expense76,00032,500Amortization expense15,50019,500Other operating expenses58,00059,000Equity in Zeeland earnings(47,160)0Separate company net income$(196,460)$(125,000)Retained earnings 1/1$(821,700)$(337,000)Net income(196,460)(125,000)Dividends declared50,00030,000Retained earnings 12/31$(968,160)$(432,000)Current assets$126,500$96,500Investment in Zeeland575,5200Property and equipment (net)852,000274,000Patents152,000166,500Total assets$1,706,020$537,000Liabilities$(417,860)$(5,000)Common stockHolland(320,000)0Common stockZeeland0(100,000)Retained earnings 12/31(968,160)(432,000)Total liabilities and owners equity$(1,706,020)$(537,000)

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

A. Compute the amount of goodwill recognized in Hollands 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 Hollands December 31, 2021, consolidated financial statements.

Prepare a worksheet to determine the amounts that should appear on Hollands December 31, 2021, consolidated financial statements. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Input all amounts as positive values.)

HOLLAND CORPORATION AND ZEELAND CORPORATIONConsolidation WorksheetFor Year Ending December 31, 2021Consolidation EntriesNoncontrollingConsolidatedAccountsHollandZeelandDebitCreditInterestTotalsSales$(606,000)$(443,500)Cost of goods sold307,200207,500Depreciation expense76,00032,500Amortization expense15,50019,500Other operating expenses58,00059,000Equity in Zeeland earnings(47,160)0Separate company net income$(196,460)$(125,000)Consolidated net incomeNoncontrolling interest in CNIControlling interest net incomeRetained earnings 1/1$(821,700)$(337,000)Net income(196,460)(125,000)Dividends declared50,00030,000Retained earnings 12/31$(968,160)$(432,000)Current assets$126,500$96,500Investment in Zeeland, Inc575,5200Property and equipment (net)852,000274,000Patents152,000166,500Goodwill00Total assets$1,706,020$537,000Liabilities(417,860)(5,000)Common stock(320,000)(100,000)Noncontrolling interestRetained earnings 12/31(968,160)(432,000)Total liabilities and equities$(1,706,020)$(537,000)$0$0 Complete this question by entering your answers in the tabs below. 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 be shown with a minus sign.) Complete this question by entering your answers in the tabs below. 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 be shown with a minus sign.)