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 $8.00 per share both before and after the acquisition by Holland. Zeeland's acquisition date balance sheet follows: Current assets Property and equipment (net) Patents $ 14,300 328,300 193,900 Liabilities Common stock Retained earnings $ 216,500 100,000 220,000 $ 536,500 $ 536,500 On January 1, 2020, Holland assessed the carrying amount of Zeeland's equipment (5-year remaining life) to be undervalued by $58,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $300,600. 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: Holland $ (675,600) 342,700 84,500 14,300 Zeeland $ (431,500) Sales Cost of goods sold Depreciation expense Amortization expense other operating expenses Equity in Zeeland earnings Separate company net income Retained earnings 1/1 53,200 (42,804) $ (223,704) $ (820,500) (223,704) 50,000 201,500 33,700 20,700 62,600 0 $ (113,000) $ (304,600) (113,000) 30,000 Net income Dividends declared Retained earnings 12/31 Current assets Investment in Zeeland Property and equipment (net) Patents Total assets Liabilities Common stock-Holland Common stock-Zeeland Retained earnings 12/31 Total liabilities and owners equity $ (994,204) $ (387,600) $ 125,300 $ 84,500 590,568 0 840,000 149,600 262,000 150,500 $ 1,705,468 $ 497,000 $ (391,264) $ (9,400) (320,000) (994,204) $(1,705,468) 0 (100,000) (387,600) $ (497,000) 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 Req A and B Req C 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 Accounts Holland Zeeland Debit Consolidation Entries Credit Noncontrolling Consolidated Interest Totals 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 Net income Dividends declared S (223,704) $ (113,000) $ (820,500) $ (304,600) (223,704) 50,000 (113,000) 30,000 $ (994,204) $ (387,600) $ (675,600) $ (431,500) 342,700 201,500 84,500 33,700 14,300 20,700 53,200 62,600 (42,804) 0 Retained earnings 12/31 Current assets $ 125,300 $ 84,500 Investment in Zeeland, Inc 590,568 0 Property and equipment (net) 840,000 Patents 149,600 262,000 150,500 Goodwill 0 0 Total assets $ 1,705,468 $ 497,000 Liabilities Common stock Noncontrolling interest Retained earnings 12/31 (391,264) (9,400) (320,000) (100,000) (994,204) (387,600) Total liabilities and equities $ (1,705,468) $ (497,000) $ 0 $ Show less 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.) a1. Goodwill Amount Controlling Interest NCI a2. Goodwill allocation b. Initial Value Change in Zeeland's RE Excess amortization Investment in Zeeland Amount $ 0 Show less