On January 1, 2023, Holland Corporation paid $7 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 $5.00 per share both before and after the acquisition by Holland. Zeeland's acquisition date balance sheet follows: $ Current assets $ 16,400 Liabilities Property and equipment (net) Patents 248,000 210,400 Common stock 100,000 221,200 Retained earnings 100,000 $ 448,000 $ 448,000 On January 1, 2023, Holland assessed the carrying amount of Zeeland's equipment (5-year remaining life) to be undervalued by $43,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $246,400. 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. The companies' financial statements for the year ending December 31, 2024, follow: Account Sales Cost of goods sold Depreciation expense Amortization expense Other operating expenses Equity in Zeeland earnings Separate company net income Retained earnings, 1/1 Net income Dividends declared Retained earnings, 12/31 Retai Current assets Current Investment in Zeeland Property Property and equipment (net) Patents Total assets Liabilities Common stock-Holland Common stock-Zeeland Retained earnings, 12/31 Holland $ (500,700) 254,100 62,500 Zeeland $ (452,500) 212,000 31,600 16,400 18,600 56,300 0 61,600 (60,456) $ (166,556) $ (822,600) (166,556) 59.999 50,000 $ (939,156) $ 127,400 599,292 861,000 153,800 $ 1,741,492 $ (482,336) (320,000) $ (134,000) $ (361,300) (134,000) 30,000 $ (465,300) $ 105,500 283,000 180,500 $569,000 $ (3,700) 0 (100,000) (465,300) 0 (939,156) $ Total liabilities and owners' equity (1,741,492) $ (569,000) At year-end, there were no intra-entity receivables or payables. Required: a1. Compute the amount of goodwill recognized in Holland's acquisition of Zeeland. a2. Show the allocation of goodwill to the controlling and noncontrolling interest. b. Show how Holland determined its December 31, 2024, Investment in Zeeland account balance. c. Prepare a worksheet to determine the amounts that should appear on Holland's December 31, 2024, consolidated financial statements. Complete this question by entering your answers in the tabs below. Req A and B Req C a1. Compute the amount of goodwill recognized in Holland's acquisition of Zeeland. a2. Show the allocation of goodwill to the controlling and noncontrolling interest. b. Show how Holland determined its December 31, 2024, Investment in Zeeland account balance. Note: Negative amounts should be shown with a minus sign. Amount a1. Goodwill Controlling Interest Noncontrolling interest a2. Goodwill allocation b. Initial Value b. Change in Zeeland's Retained earnings b. Excess amortization b. Investment in Zeeland Req A and B Req C Amount $ Show less Prepare a worksheet to determine the amounts that should appear on Holland's December 31, 2024, consolidated financial statements. Note: 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 Sales Cost of goods sold Depreciation expense Amortization expense HOLLAND CORPORATION AND ZEELAND CORPORATION Consolidation Worksheet For Year Ending December 31, 2024 Consolidation Entries Accounts Holland Zeeland Debit Credit Noncontrolling Consolidated Interest Totals $ (500,700) $ (452,500) 254,100 212,000 62,500 31,600 16,400 18,600 61,600 56,300 (60,456) 0 Other operating expenses Equity in Zeeland earnings Separate company net income Consolidated net income Noncontrolling interest in consolidated net income Controlling interest net income Retained earnings, 1/1 Net income Dividends declared Retained earnings, 12/31 Current assets Investment in Zeeland, Incorporated $ (166,556) $ (134,000) $ (822,600) $ (361,300) $ (166,556) 50,000 (134,000) 30,000 (939,156) $ (465,300) $ 127,400 $ 105,500 Property and equipment (net) Patents Goodwill Total assets Liabilities Common stock Noncontrolling interest Retained earnings, 12/31 599,292 0 861,000 153,800 283,000 180,500 0 $ 1,741,492 $ (482,336) 569,000 (3,700) (320,000) (100,000) (939,156) (465,300) Total liabilities and equities $ (1,741,492) $ (569,000) $ 0 $ 0 < Req A and B Req C >