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 Liabilities $240,500 309,900 Common stock 100,000 Retained 214,700 200,000 earnings $540,500 $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 Retained earnings 1/1 Net income Dividends declared Retained earnings 12/31 Holland Zeeland $ (559,200) $(447,500) 283,600 209,500 70,000 32,100 15,900 19,100 59,600 57,800 (48,084) 0 $ (178,184) $(129,000) $ (822,100) $(347,800) (178,184) 50,000 (129,000) 30,000 $ (950,284) $(446,800) Depreciation expense The companies' financial statements for the year ending December 31, 2021, follow: Sales Cost of goods sold Holland Zeeland $ (559,200) $(447,500) 283,600 209,500 70,000 32,100 Amortization expense 15,900 19,100 Other operating expenses 59,600 57,800 Equity in Zeeland earnings (48,084) 0 Separate company net income $ (178,184) $(129,000) Retained earnings 1/1 $ (822,100) $(347,800) Net income (178,184) (129,000) Dividends declared 50,000 30,000 Retained earnings 12/31 $ (950,284) $(446,800) Current assets $ 126,900 $ 100,500 Investment in Zeeland 629,448 O Property and equipment (net) 856,000 278,000 Patents 152,800 170,500 Total assets 1,765,148 $549,000 Liabilities Common stock-Holland Common stock-Zeeland Retained earnings 12/31 (494,864) $ (2,200) (320,000) 0 0 (100,000) (950,284) (446,800) Total liabilities and owners equity $ (1,765,148) $(549,000) At year-end, there were no intra-entity receivables or payables. 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. c. Prepare a worksheet to determine the amounts that should appear on Holland's December 31, 2021, consolidated financial statements. (Ctr Req A and B Req C 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.) Show less & Amount a1. Goodwill Controlling Interest NCI a2 Goodwill allocation b Initial Value Change in Zeeland's RE Excess amortization Investment in Zeeland Amount $ 0 Prepare a worksheet to determine the amounts that should appear on Holland's 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 CORPORATION Consolidation Worksheet For Year Ending December 31, 2021 Sales Accounts 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 Holland Zeeland $ (559,200) $ (447,500) 283,600 209,500 70,000 32,100 15,900 19,100 59,600 57,800 (48,084) 0 S (178,184) $ (129,000) + S (822,100) S (347,800) Retained earnings 1/1 Net income (178,184) Dividends declared 50,000 (129,000) 30,000 Retained earnings 12/31 $ (950,284) $ (446,800) Current assets $ 126,900 $ 100.500 Investment in Zeeland, Inc 629.448 0 Property and equipment (net). 856,000 278,000 Patents 152,800 170,500 Goodwill 0 o Total assets Liabilities Common stock Noncontrolling interest Retained earnings 12/31 Total liabilities and equities (950,284) (446,800) $ (1,765.148) S (549,000) $ $1,765,148 S 549,000 (494,864) (2,200) (320,000) (100,000) Consolidation Entries Noncontrolling Debit Credit Interest Consolidated Totals 0 $ 0 Show less &