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 $ 15,300 329,300 206,900 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: Sales $ Holland (629,400) 319,000 79,000 Zeeland $ (441,500) Cost of goods sold Depreciation expense 206,500 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) Dividends declared 50,000 (123,000) 30,000 Retained earnings 12/31 $ (972,874) $ (424,600) Current assets $ 126,300 $ 94,500 Investment in Zeeland Property and equipment (net) Patents Total assets Liabilities 600,108 850,000 151,600 $ 1,728,008 $ Common stock-Holland Common stock-Zeeland (435,134) (320,000) 0 Retained earnings 12/31 Total liabilities and owners equity (972,874) 0 272,000 160,500 $ 527,000 $ (2,400) 0 (100,000) (424,600) $ (1,728,008) $ (527,000) 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.