On January 1, 2023, Holland Corporation paid $9 per share to a group of Zeeland Corporation shareholders to acquire 60,000 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 $ 15, 700 Liabilities 237,500 Property and equipment (net) 329, 700 Common stock 100, 000 Patents 212, 100 Retained earnings 220,000 $ 557 , 500 557 ,500 On January 1, 2023, 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 acquisition-date fair values for its current assets and liabilities were equal to their carrying amounts. Any remaining excess of Z 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 Holland Zeeland Sales $ (582, 600) $ (445, 500) Cost of goods sold 295, 400 208,500 Depreciation expense 73, 000 32, 300 Amortization expense 15 , 700 19 ,300 Other operating expenses 58, 800 58, 400 Equity in Zeeland earnings (44, 994) Separate company net income $ (184, 694) $ (127, 000) Retained earnings, 1/1 $ (821, 900) $ (342, 400) Net income (184, 694) (127, 000) Dividends declared 50,000 30, 000 Retained earnings, 12/31 $ (956, 594) $ (439, 400) Current assets $ 126, 700 $ 98,500 Investment in Zeeland 609, 228 Property and equipment (net) 854, 000 276, 000 Patents 152, 400 168,506 Total assets $ 1, 742, 328 543,000 Liabilities $ (465, 734) $ (3,600) Common stock-Holland (320, 000) Common stock-Zeeland (100, 000) Retained earnings, 12/31 (956,594) 439, 400) Total liabilities and owners' equity (1, 742, 328) $ (543, 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.Req A and B Req C al. 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. Show less A Amount a1. Goodwill Controlling Interest Noncontrolling interest a2. Goodwill allocation Amount b. Initial Value b. Change in Zeeland's Retained earnings b. Excess amortization b. Investment in ZeelandRquandB Reqc Prepare a worksheet to determine the amounts that should appear on Holland's December 31, 2024,. consolidated nancial 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 Ins; 3.... $ (man) s (mom__ Cost of goods sold 295,400 Depreciation expense ?3,000 Amortization expense 15,?00 Other operating expenses 58,800 Equity in Zeeland earnings (44,994) Separate company net income $ (164,694) $ (12?,000) Consolidated net income Nonoontrolling interest in consolidated net income Controlling interest net income Retained eamings,1.'1 (921,900) $ (942,400) (164.694) (127.000) __ 30,000 50,000 (956,594) $ (439,400) _ woo - assoc _ _ Investment in Zeeland, Incorporated 609,223 - - _ - Property and equipment (net) 554,000 2%\" 000 _ - Patents 152,400 Goodwill 0 Net income Dividends declared Retained earnings, 12:31 Current assets Total assets 1,?42,323 $ Liabililies (465,?34) Common stock (320,000) Nonoontrolling interest Retained earnings, 12.131 (956,594) (439,400) Total liabilities and equities $ (1,?42,328) $ (543,000) ( Req item! B