The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $7.25 per share on January 1, 2017. The remaining 20 percent of Devine's shares also traded actively at $7.25 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 $78,000 and a fully amortized trademark with an estimated 10-year remaining life had a $65,000 fair value. At the acquisition date, Devine reported common stock of $100,000 and a retained earnings balance of $288,000 Following are the separate financial statements for the year ending December 31, 2018 Devine Inc. Holtz Corporation Sales Cost of goods sold Operating expenses Dividend income 356,500) 175,000 70,500 $ 698,000) 256,000 285,000 16,000 Net income $(173,000) $ (111,000) Retained earnings, 1/1/18 Net income (above) Dividends declared $(701,000) (173,000) $ (358,000) (111,000) 20,000 $ (814,000) Retained earnings, 12/31/18 Current assets Investment in Devine, Inc Buildings and equipment Trademarks $ 449,000) $215,000 315,500 580,000 809,000 127,000 441,000 183,000 $1,831,500 $ (697,500) $ 839,000 Total assets Liabilities Common stochk Retained earnings, 12/31/18 (above) $ 290,000) (100,000) (320,000) (814,000 449,000 Total 1iabilities and equities $ 1,831,500) (839,000) At year-end, there were no intra-entity recelvables or payables. a. Prepare a worksheet to consolidate these two companies as of December 31, 2018. b. Prepare a 2018 consolidated income statement for Holtz and Devine c. If Instead the noncontrolling interest shares of Devine had traded for $5.31 surrounding Holtz's acquisition date, what is the impact on goodwill? The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $7.25 per share on January 1, 2017. The remaining 20 percent of Devine's shares also traded actively at $7.25 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 $78,000 and a fully amortized trademark with an estimated 10-year remaining life had a $65,000 fair value. At the acquisition date, Devine reported common stock of $100,000 and a retained earnings balance of $288,000 Following are the separate financial statements for the year ending December 31, 2018 Devine Inc. Holtz Corporation Sales Cost of goods sold Operating expenses Dividend income 356,500) 175,000 70,500 $ 698,000) 256,000 285,000 16,000 Net income $(173,000) $ (111,000) Retained earnings, 1/1/18 Net income (above) Dividends declared $(701,000) (173,000) $ (358,000) (111,000) 20,000 $ (814,000) Retained earnings, 12/31/18 Current assets Investment in Devine, Inc Buildings and equipment Trademarks $ 449,000) $215,000 315,500 580,000 809,000 127,000 441,000 183,000 $1,831,500 $ (697,500) $ 839,000 Total assets Liabilities Common stochk Retained earnings, 12/31/18 (above) $ 290,000) (100,000) (320,000) (814,000 449,000 Total 1iabilities and equities $ 1,831,500) (839,000) At year-end, there were no intra-entity recelvables or payables. a. Prepare a worksheet to consolidate these two companies as of December 31, 2018. b. Prepare a 2018 consolidated income statement for Holtz and Devine c. If Instead the noncontrolling interest shares of Devine had traded for $5.31 surrounding Holtz's acquisition date, what is the impact on goodwill