On January 1, 2020, Holland Corporation paid $9 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 $7.50 per share both before and after the acquisition by Holland. Zeeland's acquisition date balance sheet follows: Current assets Property and equipment (net) Patents $ 15,900 309,900 214,700 $ 540,500 Liabilities Common stock Retained earnings $ 240,500 100,000 200,000 $ 540,500 On January 1, 2020, Holland assessed the carrying amount of Zeeland's equipment (5-year remaining life) to be undervalued by $48,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $392,600. 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 Holland $ (559,200) 283,600 70,000 15,900 59,600 (48, 084) $ (178,184) Zeeland $ (447,500) 209,500 32,100 19,100 57,800 $ (129,000) Retained earnings 1/1 Net income Dividends declared Retained earnings 12/31 $ (822,100) (178,184) 50,000 $ (950, 284) $ (347,800) (129,000) 30,000 $ (446,800) Current assets Investment in Zeeland Property and equipment (net) Patents Total assets 126,900 629,448 856,000 152,800 $ 1,765,148 $ 100,500 @ 278,000 170,500 $ 549,000 Liabilities Common stock-Holland Common stock-Zeeland Retained earnings 12/31 Total liabilities and owners equity $ (494,864) (320,000) (950, 284) $(1,765,148) $ (2,200) (100,000) (446, 800) $ (549, 000) Consolidated Noncontrolling Interest For Year Ending December 31, 2021 Consolidation Entries Holland Zeeland Debit Credit $ (559,200) $ (447,500) 283,600 209,500 70,000 32,100 9,600 15,900 19,100 39,260 59,600 57,800 (48,084) 0 48,084 $ (178,184) $ (129,000) Totals $ (1,006,700) 493,100 111,700 74,260 117,400 0 $ 32,056 210,240 32,056 178, 184 $ 347,800 $ Accounts Sales 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 Vet income Dividends declared Retained earnings 12/31 Current assets nvestment in Zeeland, Inc Property and equipment (net) Patents Goodwill Total assets Liabilities Common stock Voncontrolling interest Retained earnings 12/31 Total liabilities and equities 18,000 12,000 (822,100) (178,184) 50,000 (950,284) 227,400 $ $ 0 $ (822,100) $ (347,800) (178,184) (129,000) 50,000 30,000 $ (950,284) $ (446,800) $ 126,900 $ 100,500 629,448 0 856,000 278,000 152,800 170,500 0 0 $ 1,765,148 $ 549,000 (494,864) (2,200) (320,000) (100,000) 18,000 38,400 353,340 99,400 647,448 9,600 39,260 1,162,800 637,380 99,400 $ 2,126,980 (497,064) (320,000) (359,632) (950,284) $ (2,126,980) 100,000 (950,284) $ (1,765,148) (446,800) 446,800 $ (549,000) $ 1,500,684 $ 714,308 On January 1, 2020, Holland Corporation paid $9 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 $7.50 per share both before and after the acquisition by Holland. Zeeland's acquisition date balance sheet follows: Current assets Property and equipment (net) Patents $ 15,900 309,900 214,700 $ 540,500 Liabilities Common stock Retained earnings $ 240,500 100,000 200,000 $ 540,500 On January 1, 2020, Holland assessed the carrying amount of Zeeland's equipment (5-year remaining life) to be undervalued by $48,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $392,600. 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 Holland $ (559,200) 283,600 70,000 15,900 59,600 (48, 084) $ (178,184) Zeeland $ (447,500) 209,500 32,100 19,100 57,800 $ (129,000) Retained earnings 1/1 Net income Dividends declared Retained earnings 12/31 $ (822,100) (178,184) 50,000 $ (950, 284) $ (347,800) (129,000) 30,000 $ (446,800) Current assets Investment in Zeeland Property and equipment (net) Patents Total assets 126,900 629,448 856,000 152,800 $ 1,765,148 $ 100,500 @ 278,000 170,500 $ 549,000 Liabilities Common stock-Holland Common stock-Zeeland Retained earnings 12/31 Total liabilities and owners equity $ (494,864) (320,000) (950, 284) $(1,765,148) $ (2,200) (100,000) (446, 800) $ (549, 000) Consolidated Noncontrolling Interest For Year Ending December 31, 2021 Consolidation Entries Holland Zeeland Debit Credit $ (559,200) $ (447,500) 283,600 209,500 70,000 32,100 9,600 15,900 19,100 39,260 59,600 57,800 (48,084) 0 48,084 $ (178,184) $ (129,000) Totals $ (1,006,700) 493,100 111,700 74,260 117,400 0 $ 32,056 210,240 32,056 178, 184 $ 347,800 $ Accounts Sales 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 Vet income Dividends declared Retained earnings 12/31 Current assets nvestment in Zeeland, Inc Property and equipment (net) Patents Goodwill Total assets Liabilities Common stock Voncontrolling interest Retained earnings 12/31 Total liabilities and equities 18,000 12,000 (822,100) (178,184) 50,000 (950,284) 227,400 $ $ 0 $ (822,100) $ (347,800) (178,184) (129,000) 50,000 30,000 $ (950,284) $ (446,800) $ 126,900 $ 100,500 629,448 0 856,000 278,000 152,800 170,500 0 0 $ 1,765,148 $ 549,000 (494,864) (2,200) (320,000) (100,000) 18,000 38,400 353,340 99,400 647,448 9,600 39,260 1,162,800 637,380 99,400 $ 2,126,980 (497,064) (320,000) (359,632) (950,284) $ (2,126,980) 100,000 (950,284) $ (1,765,148) (446,800) 446,800 $ (549,000) $ 1,500,684 $ 714,308