The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $6.45 per share on January 1, 2020. The remaining 20 percent of Devines shares also traded actively at $6.45 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 $65,500 and a fully amortized trademark with an estimated 10-year remaining life had a $85,000 fair value. At the acquisition date, Devine reported common stock of $100,000 and a retained earnings balance of $224,500.

Following are the separate financial statements for the year ending December 31, 2021:

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

A.Prepare a worksheet to consolidate these two companies as of December 31, 2021

B. Prepare a 2021 consolidated income statement for Holtz and Devine.

c. If instead the noncontrolling interest shares of Devine had traded for $4.75 surrounding Holtzs acquisition date, what is the impact on goodwill?

\begin{tabular}{|l|l|} \hline Goodwill to \\ \hline \end{tabular}