The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $7.50 per share on January 1, 2020. The remaining 20 percent of Devine's shares also traded actively at $7.50 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 $46,500 and a fully amortized trademark with an estimated 10-year remaining life had a $76,000 fair value. At the acquisition date, Devine reported common stock of $100,000 and a retained earnings balance of $351,500. Following are the separate financial statements for the year ending December 31, 2021: Sales Cost of goods sold Holtz Corporation $ (786,000) 291,000 Devine, Inc. Operating expenses 289,000 Dividend income (16,000) $ (379,000) 118,000 78,000 Net income $ (222,000) $ (183,000) Retained earnings, 1/1/21 $ (733,000) $ (421,500) Net income (above) (222,000) Dividends declared 90,000 (183,000) 20,000 Retained earnings, 12/31/21 $ (865,000) $ (584,500) Current assets Investment in Devine, Inc. Buildings and equipment (net) Trademarks Total assets $ 311,500 $ 272,500 Liabilities Common stock Retained earnings, 12/31/21 (above) Total liabilities and equities $ (605,000) (320,000) (865,000) $ (1,790,000) 0 456,000 212,000 $ 940,500 $ (256,000) (100,000) (584,500) $ (940,500) 600,000 722,500 156,000 $ 1,790,000 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 $5.74 surrounding Holtz's acquisition date, what is the impact on goodwill? Required A Required B Required C Prepare a worksheet to consolidate these two companies as of December 31, 2021. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Input all amounts as positive values.) Show less Sales Accounts HOLTZ CORPORATION AND DEVINE, INC. Consolidation Worksheet For Year Ending December 31, 2021 Holtz Corporation Devine Inc. Debit Consolidation Entries Credit Noncontrolling Consolidated Interest Totals $ (786,000) $ (379,000) $ (1,165,000) 291,000 118,000 289,000 78,000 16,900 (16,000) 0 16,000 409,000 383,900 0 Cost of goods sold Operating expenses Dividend income Separate company net income Consolidated net income NI attributable to noncontrolling interest NI attributable to Holtz Corp. Retained earnings, 1/1/21 Net income Dividends declared $ (222,000) $ (183,000) (33,220) $ (372,100) 33,220 $ (733,000) $ (421,500) 421,500 42,480 (222,000) 90,000 (183,000) 20,000 16,000 4,000 Retained earnings, 12/31/21 $ (865,000) $ (584,500) Current assets Investment in Devine, Inc. Buildings and equipment (net) $ 311,500 $272,500 600,000 0 42,480 722,500 456,000 Trademarks 156,000 212,000 Goodwill Total assets 0 0 $ 1,790,000 $ 940,500 Liabilities Common stock Retained earnings, 12/31/21 (above) NCI in Devine, 1/1 NCI in Devine, 12/31 $ (605,000) $ (256,000)| (320,000) (100,000) (865,000) (584,500) Total liabilities and equities $ (1,790,000) $ (940,500) $ 496,880 $ 58,480 < Required A Required B > (37,220) $ (338,880) $ (775,480) (338,880) 90,000 $ (1,024,360) $ 584,000 Required A Required B Required C Prepare a 2021 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, 2021 Sales $ 1,165,000 Cost of goods sold 409,000 Operating expenses 383,900 Total expenses Consolidated net income To noncontrolling interest To Holtz Corporation EA $ EA $ EA $ 792,900 372,100 33,220 338,880 Required A Required B Required C If instead the noncontrolling interest shares of Devine had traded for $5.74 surrounding Holtz's acquisition date, what is the impact on goodwill? Goodwill to