The Holtz Corporation acquired $80$ percent of the $100,000$ outstanding voting shares of Devine, Inc., 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 $31,2024$:

Table Summary: Header row has no data over the first column.

Holtz

Corporation Devine,

Inc.

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, Inc. $576,0000$

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)$

Page $208$At year$-$end, there were no intra$-$entity receivables or payables.

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?

LO $4-1,4-5,4-6$