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 $7.50 per share both before and after the acquisition by Holland. Zeelands acquisition date balance sheet follows:

Current assets	$	14,100		Liabilities	$	213,500
Property and equipment (net)		308,100		Common stock		100,000
Patents		191,300		Retained earnings		200,000
	$	513,500			$	513,500

On January 1, 2020, Holland assessed the carrying amount of Zeelands equipment (5-year remaining life) to be undervalued by $56,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $290,200. 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	$	(652,200	)		$	(429,500	)
Cost of goods sold		330,900				200,500
Depreciation expense		81,500				33,900
Amortization expense		14,100				20,900
Other operating expenses		52,400				63,200
Equity in Zeeland earnings		(42,468	)			0
Separate company net income	$	(215,768	)		$	(111,000	)
Retained earnings 1/1	$	(820,300	)		$	(299,200	)
Net income		(215,768	)			(111,000	)
Dividends declared		50,000				30,000
Retained earnings 12/31	$	(986,068	)		$	(380,200	)
Current assets	$	125,100			$	82,500
Investment in Zeeland		599,856				0
Property and equipment (net)		838,000				260,000
Patents		149,200				148,500
Total assets	$	1,712,156			$	491,000
Liabilities	$	(406,088	)		$	(10,800	)
Common stockHolland		(320,000	)			0
Common stockZeeland		0				(100,000	)
Retained earnings 12/31		(986,068	)			(380,200	)
Total liabilities and owners equity	$	(1,712,156	)		$	(491,000	)

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

1. Compute the amount of goodwill recognized in Hollands 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 a worksheet to determine the amounts that should appear on Hollands December 31, 2021, consolidated financial statements.

			Amount
a1.	Goodwill
		Controlling Interest	NCI
a2.	Goodwill allocation
			Amount
b.	Initial Value
	Change in Zeelands RE
	Excess amortization
	Investment in Zeeland		$0

HOLLAND CORPORATION AND ZEELAND CORPORATIONConsolidation WorksheetFor Year Ending December 31, 2021Consolidation EntriesNoncontrollingConsolidatedAccountsHollandZeelandDebitCreditInterestTotalsSales$(652,200)$(429,500)Cost of goods sold330,900200,500Depreciation expense81,50033,900Amortization expense14,10020,900Other operating expenses52,40063,200Equity in Zeeland earnings(42,468)0Separate company net income$(215,768)$(111,000)Consolidated net incomeNoncontrolling interest in CNIControlling interest net incomeRetained earnings 1/1$(820,300)$(299,200)Net income(215,768)(111,000)Dividends declared50,00030,000Retained earnings 12/31$(986,068)$(380,200)Current assets$125,100$82,500Investment in Zeeland, Inc599,8560Property and equipment (net)838,000260,000Patents149,200148,500Goodwill00Total assets$1,712,156$491,000Liabilities(406,088)(10,800)Common stock(320,000)(100,000)Noncontrolling interestRetained earnings 12/31(986,068)(380,200)Total liabilities and equities$(1,712,156)$(491,000)$0$0