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 $ 15,700 329,700 212,100 Liabilities Common stock Retained earnings $ 237,500 100,000 220,000 $ 557,500 $ 557,500 On January 1, 2020, Holland assessed the carrying amount of Zeeland's equipment (5-year remaining life) to be undervalued by $50,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $420,100. 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 Depreciation expense Holland $ (582,600) 295,400 73,000 Zeeland $ (445,500) 208,500 32,300 Cost of goods sold Amortization expense 15,700 19,300 Other operating expenses 58,800 58,400 Equity in Zeeland earnings (44,994) 0 Separate company net income $ (184,694) $ (127,000) Retained earnings 1/1 $ (821,900) $ (342,400) Net income Dividends declared (184,694) 50,000 (127,000) 30,000 Retained earnings 12/31 $ (956,594) $ (439,400) Current assets Investment in Zeeland $ 126,700 $ 98,500 609,228 Property and equipment (net) Patents Total assets Liabilities 854,000 152,400 $ 1,742,328 Common stock-Holland Common stock-Zeeland Retained earnings 12/31 Total liabilities and owners equity $ (465,734) (320,000) 0 (956,594) $ (1,742,328) 0 276,000 168,500 $ 543,000 $ (3,600) 0 (100,000) (439,400) $ (543,000) 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. Complete this question by entering your answers in the tabs below. 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 Amount Excess amortization Investment in Zeeland Show less 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 Interest Consolidated 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 $ (184,694) $ (127,000) $ (821,900) $ (342,400) $ (582,600) $ (445,500) 295,400 208,500 73,000 32,300 15,700 19,300 58,800 58,400 (44,994) 0 Retained earnings 1/1 Net income (184,694) Dividends declared 50,000 (127,000) 30,000 Retained earnings 12/31 $ (956,594) $ (439,400) Current assets $ 126,700 $ 98,500 Investment in Zeeland, Inc 609,228 0 Property and equipment (net) 854,000 Patents 152,400 276,000 168,500 Goodwill Total assets Liabilities Common stock Noncontrolling interest Retained earnings 12/31 0 0 $ 1,742,328 $ 543,000 (465,734) (3,600) (320,000) (100,000) (956,594) (439,400) Total liabilities and equities $ (1,742,328) $ (543,000) Show less