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 $ 15,300 Property and equipment (net) Patents 329,300 206,900 Liabilities Common stock Retained earnings $ 231,500 100,000 220,000 $ 551,500 $ 551,500 On January 1, 2020, Holland assessed the carrying amount of Zeeland's 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. 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 $ (629,400) 319,000 79,000 15,300 Zeeland $ (441,500) Sales Cost of goods sold Depreciation expense Amortization expense Other operating expenses Equity in Zeeland earnings Separate company net income Retained earnings 1/1 Net income Dividends declared Retained earnings 12/31 Current assets 57,200 (42,474) $ (201,374) $ (821,500) (201,374) 50,000 206,500 32,700 19,700 59,600 0 $ (123,000) $ (331,600) (123,000) 30,000 $ (424,600) $ (972,874) $ 126,300 $ 94,500 0 272,000 160,500 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 600,108 850,000 151,600 $ 1,728,008 $ 527,000 $ (435,134) $ (320,000) 0 (972,874) $ (1,728,008) (2,400) 0 (100,000) (424,600) $ (527,000)