On January 1, 2020, Holland Corporation pald $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 $7.50 per share both before and after the acquisition by Holland. Zeeland's acquisition date balance sheet follows: -9:41 Current assets Property and equipment (net) Patents $ 14,100 308, 100 191,300 $ 513,500 Liabilities Common stock Retained earnings $ 213,500 100,000 200,000 $ 513,500 On January 1, 2020, Holland assessed the carrying amount of Zeeland's equipment (5-year remalning life) to be undervalued by $56,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $290,200. Zeeland's acquisition-date fair values for its current assets and liabilities were equal to their carrying amounts. Any remalnlng 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 (652,200) 338,900 81,500 14,180 52,400 (42,468) (215, 768) Zeeland $ (429,500) 299,500 33,900 20,900 63, 200 3 $ (111, 000) $ Retained earnings 1/1 Net income Dividends declared (820.300) (215, 768) se, 900 (986,968) $ (299,200) ( 111.908) Bo, ece $(388, 2ee) Retained earnings 12/31 current assets Investment in Zeeland $ $ 82, see 125. Lee 599,856 The companies' financial statements for the year ending December 31, 2021, follow Holland (652,200) $ 330,900 Sales Cost of goods sold Depreciation expense Amortization expense Other operating expenses Equity in Zeeland earnings Separate company net income 81,500 14,100 52,400 (42,468) (215, 768) Zeeland $ (429,500) 200,500 33,900 20,900 63,200 $ $ (111, 000) $ Retained earnings 1/1 Net income Dividends declared Retained earnings 12/31 (820, 300) (215,768) 50,000 (986, 068) $ (299, 200) (111, 000) 3e, eee $ (380, 200) $ $ Current assets Investment in Zeeland Property and equipment (net) Patents Total assets $ 125, 100 599,856 838,000 149,200 $ 1,712,156 82,500 e 260,000 148,500 491,000 $ $ $ (406,088) (B20,000) (10, 800) Liabilities Common stock-Holland Common stock-Zeeland Retained earnings 12/31 Total liabilities and owners equity (986, 068) $(1,212,156) (100,000) (380, 2ee) $ (491,088) 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 Zee and account balance. c. Prepare a worksheet to determine the amounts that should appear on Holland's December 31, 2021, consolidated financial statements 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.) Show less Amount al. Goodwill $ 193,800 Controlling Interest NCI Goodwill allocation $ 152,280 $ 41.520 Amount b. Initial Value Change in Zeeland's RE Excess amortization Investment in Zeeland $ 0 Reqc > Accounts HOLLAND CORPO ORATION Consolidali For Year Ending December 31, 2021 Consolidation Entries Holland Zeeland Debit Credit $ (652,200) $ (429,500) 330,900 200,500 81,500 33.900 14,100 20.900 Noncontrolling Interest Consolidated Totals Sales 52,400 63,200 0 (42.468) (215.768) $ $ (111.000) 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 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 $ (820.300) S (299,200) (215,788) (111.000) 50,000 30,000 $ (986.068) $ (380.200) $ 125,100 $ 82.500 599.856 838.000 260,000 149,200 148,500 0 0 5 1.712,156 491,000 (406.088) (10,800) (320.000) (100,000 (986.088) (380,200) $ (1.712.158) (401 000) 0 $ On January 1, 2020, Holland Corporation pald $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 $7.50 per share both before and after the acquisition by Holland. Zeeland's acquisition date balance sheet follows: -9:41 Current assets Property and equipment (net) Patents $ 14,100 308, 100 191,300 $ 513,500 Liabilities Common stock Retained earnings $ 213,500 100,000 200,000 $ 513,500 On January 1, 2020, Holland assessed the carrying amount of Zeeland's equipment (5-year remalning life) to be undervalued by $56,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $290,200. Zeeland's acquisition-date fair values for its current assets and liabilities were equal to their carrying amounts. Any remalnlng 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 (652,200) 338,900 81,500 14,180 52,400 (42,468) (215, 768) Zeeland $ (429,500) 299,500 33,900 20,900 63, 200 3 $ (111, 000) $ Retained earnings 1/1 Net income Dividends declared (820.300) (215, 768) se, 900 (986,968) $ (299,200) ( 111.908) Bo, ece $(388, 2ee) Retained earnings 12/31 current assets Investment in Zeeland $ $ 82, see 125. Lee 599,856 The companies' financial statements for the year ending December 31, 2021, follow Holland (652,200) $ 330,900 Sales Cost of goods sold Depreciation expense Amortization expense Other operating expenses Equity in Zeeland earnings Separate company net income 81,500 14,100 52,400 (42,468) (215, 768) Zeeland $ (429,500) 200,500 33,900 20,900 63,200 $ $ (111, 000) $ Retained earnings 1/1 Net income Dividends declared Retained earnings 12/31 (820, 300) (215,768) 50,000 (986, 068) $ (299, 200) (111, 000) 3e, eee $ (380, 200) $ $ Current assets Investment in Zeeland Property and equipment (net) Patents Total assets $ 125, 100 599,856 838,000 149,200 $ 1,712,156 82,500 e 260,000 148,500 491,000 $ $ $ (406,088) (B20,000) (10, 800) Liabilities Common stock-Holland Common stock-Zeeland Retained earnings 12/31 Total liabilities and owners equity (986, 068) $(1,212,156) (100,000) (380, 2ee) $ (491,088) 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 Zee and account balance. c. Prepare a worksheet to determine the amounts that should appear on Holland's December 31, 2021, consolidated financial statements 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.) Show less Amount al. Goodwill $ 193,800 Controlling Interest NCI Goodwill allocation $ 152,280 $ 41.520 Amount b. Initial Value Change in Zeeland's RE Excess amortization Investment in Zeeland $ 0 Reqc > Accounts HOLLAND CORPO ORATION Consolidali For Year Ending December 31, 2021 Consolidation Entries Holland Zeeland Debit Credit $ (652,200) $ (429,500) 330,900 200,500 81,500 33.900 14,100 20.900 Noncontrolling Interest Consolidated Totals Sales 52,400 63,200 0 (42.468) (215.768) $ $ (111.000) 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 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 $ (820.300) S (299,200) (215,788) (111.000) 50,000 30,000 $ (986.068) $ (380.200) $ 125,100 $ 82.500 599.856 838.000 260,000 149,200 148,500 0 0 5 1.712,156 491,000 (406.088) (10,800) (320.000) (100,000 (986.088) (380,200) $ (1.712.158) (401 000) 0 $