Problem $4-33($Static$)($LO $4-5,4-6,4-7)$

The Holtz Corporation acquired $80$ percent of the $100,000$ outstanding voting shares of Devine, Incorporated, for $$7\mathrm{.}20$ per share on January $1,2023.$ The remaining $20$ percent of Devine$$s shares also traded actively at $$7\mathrm{.}20$ per share before and after Holtz$$s acquisition. An appraisal made on that date determined that all book values appropriately reflected the fair values of Devine$$s underlying accounts except that a building with a $5-$year future life was undervalued by $$85,500$ and a fully amortized trademark with an estimated $10-$year remaining life had a $$64,000$ fair value. At the acquisition date, Devine reported common stock of $$100,000$ and a retained earnings balance of $$226,500.$

Following are the separate financial statements for the year ending December $31,2024$:

Account Holtz Corporation Devine, Incorporated

Sales $ $(641,000)$ $ $(399,000)$

Cost of goods sold $198,000176,000$

Operating expenses $273,000126,000$

Dividend income $(16,000)0$

Net income $ $(186,000)$ $ $(97,000)$

Retained earnings, $1/1/24$ $ $(762,000)$ $ $(296,500)$

Net income $($above$)(186,000)(97,000)$

Dividends declared $70,00020,000$

Retained earnings, $12/31/24$ $ $(878,000)$ $ $(373,500)$

Current assets $ $121,000$ $ $120,500$

Investment in Devine, Incorporated $576,0000$

Buildings and equipment $($net$)887,000335,000$

Trademarks $149,000236,000$

Total assets $ $1,733,000$ $ $691,500$

Liabilities $ $(535,000)$ $ $(218,000)$

Common stock $(320,000)(100,000)$

Retained earnings, $12/31/24($above$)(878,000)(373,500)$

Total liabilities and equities $ $(1,733,000)$ $ $(691,500)$

At year$-$end, there were no intra$-$entity receivables or payables.

Required:

Prepare a worksheet to consolidate these two companies as of December $31,2024.$

Prepare a $2024$ consolidated income statement for Holtz and Devine.

If instead the noncontrolling interest shares of Devine had traded for $$4\mathrm{.}76$ surrounding Holtz$$s acquisition date, what is the impact on goodwill?