The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $6.80 per share on January 1, 2020. The remaining 20 percent of Devine's shares also traded actively at $6.80 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 $84,000 and a fully amortized trademark with an estimated 10-year remaining life had a $81,000 fair value. At the acquisition date, Devine reported common stock of $100,000 and a retained earnings balance of $254,000. Following are the separate financial statements for the year ending December 31, 2021: Sales Cost of goods sold Operating expenses 287,000 Holtz Corporation $ (751,000) 249,000 Devine, Inc. $ (409,250) 177,000 128,250 Dividend income (16,000) Net income $ (231,000) $ (104,000) Retained earnings, 1/1/21 $ (753,000) $ (324,000) Net income (above) (231,000) Dividends declared 80,000 (104,000) 20,000 Retained earnings, 12/31/21 $ (904,000) $ (408,000) Current assets Investment in Devine, Inc. Buildings and equipment (net) Trademarks Total assets $ 147,000 $ 186,000 544,000 900,000 147,000 405,000 145,000 $ 1,738,000 $ 736,000 Liabilities Common stock $ Retained earnings, 12/31/21 (above) Total liabilities and equities (514,000) (320,000) (904,000) $ (228,000) (100,000) (408,000) $ (1,738,000) $ (736,000) 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 $5.19 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.) Sales Cost of goods sold Operating expenses HOLTZ CORPORATION AND DEVINE, INC. Consolidation Worksheet For Year Ending December 31, 2021 Accounts Holtz Corporation Devine Inc. Debit Consolidation Entries Credit Noncontrolling Interest Consolidated Totals $ $ (751,000) (409,250) $ (1,160,250) 249,000 177,000 426,000 287,000 128,250 24,900 440,150 (16,000) 0 16,000 0 $ $ (231,000) (104,000) Dividend income Separate company net income Consolidated net income NI attributable to noncontrolling interest NI attributable to Holtz Corp. $ 294,100 15,820 15,820 $ 278,280 $ (789,080) 16,000 4,000 80,000 (987,360) Retained earnings, 1/1/21 Net income Dividends declared $ (753,000) (231,000) 80,000 324,000 36,080 (324,000) (104,000) 20,000 $ Retained earnings, 12/31/21 $ (904,000) (408,000) Current assets Investment in Devine, Inc. Buildings and equipment (net) Trademarks Goodwill $ 147,000 $ 186,000 544,000 0 36,080 580,080 900,000 405,000 67,200 16,800 147,000 145,000 72,900 8,100 0 0 161,000 Total assets $ 1,738,000 $736,000 Liabilities Common stock Retained earnings, 12/31/21 (above) $ (514,000) (228,000) (320,000) (100,000) (904,000) (408,000) 100,000 333,000 1,355,400 356,800 161,000 $ 2,206,200 $ 742,000 (320,000) (987,360) NCI in Devine, 1/1 145,020 NCI in Devine, 12/31 11,820 Total liabilities and equities $ (1,738,000) $802,080 $ 802,080 $ (2,206,200) (736,000) Show less