On January 1, 2020, Holland Corporation paid $9 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 $8.00 per share both before and after the acquisition by Holland. Zeelands acquisition date balance sheet follows:

Current assets $ 15,300 Liabilities $ 231,500

Property and equipment (net) 329,300 Common stock 100,000

Patents 206,900 Retained earnings 220,000

$ 551,500 $ 551,500

On January 1, 2020, Holland assessed the carrying amount of Zeelands equipment (5-year remaining life) to be undervalued by $54,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $414,100. 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: Holland Zeeland

Sales$ (629,400 ) $ (441,500 )

Cost of goods sold 319,000 206,500

Depreciation expense 79,000 32,700

Amortization expense 15,300 19,700

Other operating expenses 57,200 59,600

Equity in Zeeland earnings (42,474 ) 0

Separate company net income $ (201,374 ) $ (123,000 )

Retained earnings 1/1 $ (821,500 ) $ (331,600 )

Net income (201,374 ) (123,000 )

Dividends declared 50,000 30,000

Retained earnings 12/31 $ (972,874 ) $ (424,600 )

Current assets $ 126,300 $ 94,500

Investment in Zeeland 600,108 0

Property and equipment (net) 850,000 272,000

Patents 151,600 160,500

Total assets $ 1,728,008 $ 527,000

Liabilities $ (435,134 ) $ (2,400 )

Common stockHolland (320,000 ) 0

Common stockZeeland 0 (100,000 )

Retained earnings 12/31 (972,874 ) (424,600 )

Total liabilities and owners equity $ (1,728,008 ) $ (527,000 )

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

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

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.) HOLLAND CORPORATION AND ZEELAND CORPORATION Consolidation Worksheet For Year Ending December 31, 2021 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.) HOLLAND CORPORATION AND ZEELAND CORPORATION Consolidation Worksheet For Year Ending December 31, 2021