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 $ 557,500 Liabilities Common stock Retained earnings $ 237,500 100,000 220,000 $ 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 Cost of goods sold Depreciation expense Amortization expense Other operating expenses Equity in Zeeland earnings Separate company net income Holland $(582,600 295,400 73,000 15,700 58,800 (44,994) $ (184,694) Zeeland $ K445,500 208,500 32,300 19,300 58,400 $ 127.000) Retained earnings 1/1 Net income Dividends declared Retained earnings 12/31 $ (821,900 (184,694) 50,000 $ (956,594) $(342,400) 1127,000) 30,000 $ 439,400) $ 98,500 Current assets Investment in Zeeland Property and equipment (net) Patents Total assets $ 126,700 609,228 854,000 152,400 $ 1,742,328 276,000 168,500 $ 543,000 $ (3,600) Liabilities 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) (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. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg A and B Reg 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.) Show less Amount Goodwill $ a 1 52,010 % NCI Controlling Interest 65,940 Goodwill allocation $ $ a2 3.960 > Amount $ Initial Value b 540,000 Change in Zeeland's RE Excess amortization 131,640 (62.412) 609.228 $ Investment in Zeeland 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.) Show less Noncontrolling Interest Accounts Sales HOLLAND CORPORATION AND ZEELAND CORPORATION Consolidation Worksheet For Year Ending December 31, 2021 Consolidation Entries Holland Zeeland Debit Credit $ (582,600) $ (445,500) 295,400 208,500 73,000 32,300 10,000 15,700 19,300 58,800 58,400 (44,994) 0 44.994 $ (184,694) $ (127000) Consolidated Totals s (1,028 100) 503,900 115,300 77010 117 200 $ (29,996) S S 342,400 127,000 X Cost of goods sold Depreciation expense Amortization expense Other operating expenses Equity in Zeeland eamings Separate company net income Consolidated net income Noncontrolling interest in CNI Controlling interest net income Retained earnings 1/1 Net income Dividends declared Retained earnings 12/31 Current assets Investment in Zeeland, Inc Property and equipment (net) Patents Goodwill Total assets Liabilities Common stock Noncontrolling interest Retained earnings 12/31 Total liabilities and equities (214,690) X 29.996 (184,694) X (821.900Y (184 694) 50.000 (956,594) 225,200 0 18,000 $ (342,400) (127,000 30,000 $ (439,400) $ 98,500 0 12,000 000000 OOOOOOOOOOOOO $ (821,900) (184,694) 50.000 $ (956,594) $ 126,700 609,228 854,000 152,400 0 $ 1,742,328 (465,734) (320,000) $ 276,000 168,500 40,000 378,090 609,228 X 10,000 42,010 69,900 $ 543,000 (3,600) (100.000 1.160,000 656,980 69,900 s 2,112,080 (469,334) (320.000) (366.152) (956,594) 100,000 (956,594) (439,400) 439,400 X $ (543,000) $ 679 238 (1.742,328) 1,551,784 $ (2.112.080)