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 asset Property and equipment (net) patente $14,200 328,200 192,600 5.535,000 Dabilities Common stock Retained earnings $215,000 100,000 220,000 $ 535,000 On January 1, 2020, Holland assessed the carrying amount of Zeeland's equipment (5-year remaining life) to be undervalued by $57,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $295,400. 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. Lyconate la valle e LOUR Value was bui90 The companies financial statements for the year ending December 31, 2021, follow: Sales Cost of goods sold Depreciation expense Amortisation expense Other operating expenses Equity in Zeeland earnings Separate company net Income Holland $ (663,900) 336,800 83,000 14,200 52,800 (42) 626 $(219,736) Zeeland $(430,500) 201,000 33,300 20,800 62,900 0 (112,000) Retained earnings 1/1 Net Income Dividends declared Retained earning 12/31 (820,400 (219,736) 50.000 (990,136) 5 (301,900) (112,000) 30.000 5x383,900) Current ante Investment in teoland Property and equipment (net) patente Total assets 125,200 509,212 39.000 149.400 01, 702,012 3,500 0 261.000 149.500 $494,000 (10,100) Liabilities Common stockland Common stock-Xeoland Retained sarning 12/31 Total liabilities and we equity (392, 076) (320.000) 0 (1990,136 501, 702,012) (100,000) 12.900 5(494,000) 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 ar 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. Reg A and B Reqc 2. 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 Holtand determined its December 31, 2021, Investment in Zeeland account balance. (Negative amounts should be shown with a minus sign.) Show less Amount 31 Goodwill Controlling Interest NCI Goodwill allocation Amount b Initial Value Change in Zooland's RE Excess amortization Investment in Zooland Reqc > Consolidation Entries Debit Credit Noncontrolling Interest Consolidated Totals Holland Zooland $ (863,900) $ (430,500) 336,800 201,000 83,000 33,800 14,200 20,800 52,800 62.900 (42,636) 0 $ (219.736) $ (112,000) Accounts 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 Not 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 camings 12/31 Total liabilities and equities $ (820,400) $ (301,900) (219,736) (112,000) 50,000 30,000 $(990,136) S (383,900) $ 125,200 $ 83,500 589.212 0 839,000 261,000 149,400 149,500 0 $ 1,702,812 S 494,000 (392,676) (10.100) (320,000) (100,000) (990,136) (383,900) $ (1.702,812) S (494.000)