On January 1, 2023, Holland Corporation paid $8 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 $6.50 per share both before and after the acquisition by Holland. Zeeland's acquisition date balance sheet follows:

Current Assets	$14,000	Liabilities	$212,000
Property and equipment (net)	$268,000	Common Stock	$100,000
Patents	$190,000	Retained Earnings	$160,000
	$472,000		$472,000

On January 1, 2023, Holland assessed the carrying amount of Zeeland's equipment (5-year remaining life) to be undervalued by $55,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $285,000. 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:

Accounts	Holland	Zeeland
Sales	$(640,500)	$(428,500)
Cost of goods sold	$325,000	$200,000
Depreciation expense	$80,000	$34,000
Amortization expense	$14,000	$21,000
Other operating expenses	$52,000	$63,500
Equity in Zeeland earnings	$(42,300)	$0
Separate company Net Income	$(211,800)	$(110,000)
Retained Earnings, 1/1	$(820,200)	$(296,500)
Net Income (above)	$(211,800)	$(110,000)
Dividends declared	$50,000	$30,000
Retained Earnings, 12/31	$(982,000)	$(376,500)
Current Assets	$125,000	$81,500
Investment in Zeeland	$562,500	$0
Property and equipment (net)	$837,000	$259,000
Patents	$149,000	$147,500
Total Assets	$1,673,500	$488,000
Liabilities	$(371,500)	$(11,500)
Common Stock-Holland	$(320,000)	$0
Common Stock-Zeeland	$0	$(100,000)
Retained Earnings, 12/31	$(982,000)	$(376,500)
Total liabilities and equities	$(1,673,500)	$(488,000)

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.