only need to solve Req C. thank you!
On January 1, 2020, 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 Property and equipment (net) Patents $ 14,800 268,800 200,400 $ 484,000 Liabilities Common stock Retained earnings $ 224,000 100,000 160,000 $ 484.000 On January 1, 2020, Holland assessed the carrying amount of Zeeland's equipment (5-year remaining life) to be undervalued by $63,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $315,600. Zepland'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, 2021, follow: Holland Zeeland Sales $ (734, 100) $(436,500) Cost of goods sold 372,200 204,000 Depreciation expense 92,000 33,200 Amortization expense 14,800 20,200 Other operating expenses 55,200 61,100 Equity in Zeeland earnings (44,304) Separate company net income $ (244,204) $(118,000) Retained earnings 1/1 $ (821,000) $(318,100) Net income (244,204) (118,000) Dividends declared 50,000 30,000 Retained earnings 12/31 $(1,015,204) $(406, 100) $ Current assets 125,800 $ 89,500 Tnvestment in Zeeland 574.668 8 Uuuu LG OSLO Investment in Zeeland Property and equipment (net) Patents Total assets AVUU 574,668 845,000 150,600 $ 1,696,068 267,800 155,500 $ 512,000 $ (5,900) Liabilities Common stock-Holland Common stock-Zeeland Retained earnings 12/31 Total liabilities and owners equity $ (360,864) (320,000) (1,015,204) $(1,696,068) (100,000) (406, 100) $ (512,890) 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 Zeeland account balance. c. Prepare a worksheet to determine the amounts that should appear on Holland's December 31, 2021, consolidated financial statements. Noncontrolling Interest Consolidated Totals $ (1.170,600) 576,200 137,800 66,560 116,300 0 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 Net income Dividends declared Retained earnings 12/31 HOLLAND CORPORATION AND ZEELAND CORPORATION Consolidation Worksheet For Year Ending December 31, 2021 Consolidation Entries Holland Zeeland Debit Credit $ (734 100) $ (436,500) 372,200 204,000 92,000 33,200 12,600 14,800 20,200 31,560 55,200 61,100 (44,304) 0 44,304 $ (244,204) $ (118,000) (29,536) 318,100 $ (273,740) 29,536 $ (244,204) $ (821,000) (244,204) 50,000 $ (1,015,204) $ 215,300 16,000 14,000 Current assets $ (821,000) (244,204) 50,000 $ (1,015,204) $ 125,800 574,668 845,000 150,600 0 $ 1,696,068 (360,864) AAA AAA $ (318,100) (118,000) 30,000 $ (406,100) $ 89,500 0 267,000 155,500 0 $ 512,000 (5,900) Investment in Zeeland, Inc Property and equipment (net) Patents Goodwill Total assets Liabilities 0 16,000 50,400 284,040 101,400 590,668 12,600 315,600 1,149,800 274.540 101,400 1.741,040 (366,764) $ D0% 0% AA AAAL PH NANAS (44,304) $ (244,204) 44,304 0 0 $ (118,000) 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 (29,536) 318,100 16,000 S (273,740) 29,536 $ (244,204) $ (821,000) (244,204) 50,000 $ (1,015,204) $ 215,300 0 14,000 Retained earnings 12/31 $ (821,000) (244,204) 50,000 $ (1.015,204) $ 125,800 574,668 845,000 150,600 0 $ 1,696,068 (360,864) (320,000) $ (318,100) (118,000) 30,000 $ (406,100) $ 89,500 0 267,000 155,500 0 $ 512,000 (5,900) (100,000) 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 16,000 50,400 284,040 101,400 590,668 12,600 315,600 1,149,800 274,540 & 101,400 $ 1.741,040 % (366,764) (320,000) 0 % (1,015,204) $ (1.701,968) lolololol 100,000 178,336 (178.336) (1,015,204) $ (1,696,068) (406,100) $ (512,000) $ 958.404 $ 1,113,204
