The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $6.10 per share on January 1, 2017. The remaining 20 percent of Devines shares also traded actively at $6.10 per share before and after Holtzs acquisition. An appraisal made on that date determined that all book values appropriately reflected the fair values of Devines underlying accounts except that a building with a 5-year future life was undervalued by $67,500 and a fully amortized trademark with an estimated 10-year remaining life had a $61,000 fair value. At the acquisition date, Devine reported common stock of $100,000 and a retained earnings balance of $149,500.

Following are the separate financial statements for the year ending December 31, 2018:

Problem 4-38 (LO 4-5, 4-6, 4-7) The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $6.10 per share on January 1, 2017. The remaining 20 percent of Devine's shares also traded actively at $6.10 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 $67,500 and a fully amortized trademark with an estimated 10-year remaining life had a $61,000 fair value. At the acquisition date, Devine reported common stock of $100,000 and a retained earnings balance of $149,500. Following are the separate financial statements for the year ending December 31, 2018: Devine, Holtz Corporation (708,000) 237,000 311,000 Inc Sales (350,250) Cost of qoods sold 116,000 Operating expenses Dividend income 74,250 0 (16,000) (176,000) $(160,000) Net income Retained earnings, 1/1/18 Net income (above) (219,500) (160,000) 20,000 $ (359,500 (736,000) (176,000) 90,000 Dividends declared (822,000) Retained earnings, 12/31/18 139,000 488,000 892,000 180,000 175,500 0 Current assets Investment in Devine, Inc Buildings and equipment (net) 350,000 210,000 Trademarks $ 1,699,000 735,500 Total assets Liabilities (557,000) (320,000) (822,000) S (276,000) (100,000) (359,500) Common stock Retained earnings, 12/31/18 (above) (1,699,000) $(735,500) Total liabilities and equities At year-end, there were no intra-entity receivables or payables. worksheet to consolidate these two companies as of December 31, 2018. 2018 consolidated income statement for Holtz and Devine. Prepare . Prepare c. If instead the noncontrolling interest shares of Devine had traded for $3.78 surrounding Holtz's acquisition date, what is the impact on goodwill? a. a Answer is not complete. Complete this question by entering your answers in the tabs below. Required B Required A Required C HOLTZ CORPORATION AND DEVINE, INC. Consolidation Worksheet For Year Ending December 31, 2018 Consolidation Entries Holtz Devine Noncontrolling Interest Consolidated Totals Accounts Corporation Inc. Debit Credit $ (708,000) $ (1,058,250) Sales (350,250) Cost of goods sold 237,000 116,000 353,000 Operating expenses 311,000 19,600 404,850 74,250 Dividend income (16,000) 16,000 $ (176,000) Separate company net income (160,000) Consolidated net income (300,400) NI attributable to noncontrolling interest (19,600) (19,600) NI attributable to Holtz Corp. $ (320,000) $ (736,000) 219,500 40,320 Retained earnings, 1/1 (776,320) (219,500) (160,000) (336,000) Net income (176,000) 90,000 Dividends declared 90,000 20,000 16,000 4,000 $ (822,000) $ (1,022,320) Retained earnings, 12/31 (359,500) $ 175,500 Current assets 139,000 314,500 Investment in Devine 488,000 40,320 640,320 54,000 13,500 1,282,500 Buildings and equipment (net) 892,000 350,000 Trademarks 180,000 210,000 54,900 6,100 438,800 Goodwill 350,600 350,600 0 0 $ 1,699,000 $ 735,500 Total assets 2,386,400 $ (276,000) |(100,000) $ (557,000) Liabilities (833,000) (320,000) 100,000 Common stock (320,000) (822,000) (1,181,500) Retained earnings, 12/31 (359,500) NCI in Devine, 1/1 1.5 (15,600) NCI in Devine, 12/31 68,180 $(1,699,000) $ 876,320 $ (2,334,500) $ 854,920 Total liabilities and equities (735,500) Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare a 2018 consolidated income statement for Holtz and Devine. (Enter all amounts as positive values.) HOLTZ CORPORATION AND DEVINE, INC. Consolidated Income Statement For Year Ending December 31, 2018 Total expenses 0 0 To noncontrolling interest To Holtz Corporation 0 Required A Required C Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C If instead the noncontrolling interest shares of Devine had traded for $3.78 surrounding Holtz's acquisition date, what is the impact on goodwill? Goodwill to Required B Required C