The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc , for $6 55 per share on January 1, 2020 The remaining 20 percent of Devine's shares also traded actively at $6 55 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 $59,500 and a fully amortized trademark with an estimated 10 year remaining life had a $66,000 fair value At the acquisition date, Devine reported common stock of $100,000 and a retained earnings balance of $194,500 Following are the separate financial statements for the year ending December 31, 2021 Holtz CorporationDevine, Inc Sales$(704,000)$(439,000)Cost of goods sold260,000171,000Operating expenses249,000120,000Dividend income(16,000)0Net income$(211,000)$(148,000)Retained earnings, 1 1 21$(735,000)$(264,500)Net income (above)(211,000)(148,000)Dividends declared70,00020,000Retained earnings, 12 31 21$(876,000)$(392,500)Current assets$194,500$201,500Investment in Devine, Inc 524,0000Buildings and equipment (net)837,500332,000Trademarks150,000159,000Total assets$1,706,000$692,500Liabilities$(510,000)$(200,000)Common stock(320,000)(100,000)Retained earnings, 12 31 21 (above)(876,000)(392,500)Total liabilities and equities$(1,706,000)$(692,500) At year end, there were no intra entity receivables or payables Prepare worksheet to consolidate these two companies as of December 31, 2021 Prepare 2021 consolidated income statement for Holtz and Devine If instead the noncontrolling interest shares of Devine had traded for $4 20 surrounding Holtz's acquisition date, what is the impact on goodwill For Year Ending December 31, 2021 Accounts Holtz Devine Consolidation Entries Noncontrolling Consolidated Corporation Inc Debit Credit Interest Totals Sales (704 000) (430 000) (1 143,000 Cost of goods sold 280 000 171 000 431 000 Operating expenses 240 000 120 000 18 500 387 500 Dividend income (16,000) 16,000 Separate company net income $ (211,000) (148 000) Consolidated net income (324,500) NI attributable to noncontrolling interest (25 900) x 25 900 NI attributable to Holtz Corp 208 800 Retained earnings 1 1 21 5 (735 000) (204 500) 264 500 41 200 776 200 Net income (211,000 (148,000) (288,800) Dividends declared 70 000 20,000 16 000 4 000 70 000 Retained earnings, 12 31 21 (876,000 1302 500 (1 004,800 Current assets 104 500 $ 201,500 308,000 Investment in Devine, Inc 624,000 41,200 505,200 Buildings and equipment (net) 837 500 332 000 47 600 11 000 1 205 200 Trademarks 150 000 159 000 50 400 8 600 361 800 Goodwill 235,000 235,000 Goodwill 0 235 000 235,000 Total assets $ 1,708,000 3 602,500 $ 2 108,000 Liabilities $ (510,000) (200 000) (710,000) Common stock 320,000 (100,000) 100,000 (320 000) Retained earnings, 12 31 21 (above) (876,000) (382 500) (1 004,500) NCI in Devine, 1 1 141,300 (141 300) NCI in Devine 12 31 (171 200) (171 200) Total liabilities and equities $ (1 706,000) (802,500) $ 782 200 $ 782,200HOLTZ CORPORATION AND DEVINE, INC Consolidated Income Statement For Year Ending December 31, 2021 $ 1, 143,000 Operating expenses 431,000 X Cost of goods sold 387,500 X Total expenses 818,500 Consolidated net income 324,500 To noncontrolling interest (25,900) X To Holtz Corporation 350,400

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The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $6.55 per share on January 1, 2020. The remaining

The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $6.55 per share on January 1, 2020. The remaining 20 percent of Devine's shares also traded actively at $6.55 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 $59,500 and a fully amortized trademark with an estimated 10-year remaining life had a $66,000 fair value. At the acquisition date, Devine reported common stock of $100,000 and a retained earnings balance of $194,500.

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

Holtz

CorporationDevine,

Inc.Sales$(704,000)$(439,000)Cost of goods sold260,000171,000Operating expenses249,000120,000Dividend income(16,000)0Net income$(211,000)$(148,000)Retained earnings, 1/1/21$(735,000)$(264,500)Net income (above)(211,000)(148,000)Dividends declared70,00020,000Retained earnings, 12/31/21$(876,000)$(392,500)Current assets$194,500$201,500Investment in Devine, Inc.524,0000Buildings and equipment (net)837,500332,000Trademarks150,000159,000Total assets$1,706,000$692,500Liabilities$(510,000)$(200,000)Common stock(320,000)(100,000)Retained earnings, 12/31/21 (above)(876,000)(392,500)Total liabilities and equities$(1,706,000)$(692,500)

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

Prepare worksheet to consolidate these two companies as of December 31, 2021.
Prepare 2021 consolidated income statement for Holtz and Devine.
If instead the noncontrolling interest shares of Devine had traded for $4.20 surrounding Holtz's acquisition date, what is the impact on goodwill?

For Year Ending December 31, 2021 Accounts Holtz Devine Consolidation Entries Noncontrolling Consolidated Corporation Inc. Debit Credit Interest Totals Sales (704.000) (430.000) (1.143,000] Cost of goods sold 280.000 171.000 431.000 Operating expenses 240.000 120.000 18.500 387.500 Dividend income (16,000) 16,000 Separate company net income $ (211,000) (148.000) Consolidated net income (324,500) NI attributable to noncontrolling interest (25.900) x 25.900 NI attributable to Holtz Corp 208.800 Retained earnings. 1/1/21 5 (735.000) (204.500) 264.500 41.200 776.200 Net income (211,000 (148,000) (288,800) Dividends declared 70.000 20,000 16.000 4.000 70.000 Retained earnings, 12/31/21 (876,000] 1302.500 (1.004,800] Current assets 104.500 $ 201,500 308,000 Investment in Devine, Inc. 624,000 41,200 505,200 Buildings and equipment (net) 837.500 332.000 47.600 11.000 1.205.200 Trademarks 150.000 159.000 50.400 8.600 361.800 Goodwill 235,000 235,000 Goodwill 0 235.000 235,000 Total assets $ 1,708,000 3 602,500 $ 2.108,000 Liabilities $ (510,000) (200.000) (710,000) Common stock 320,000 (100,000) 100,000 (320.000) Retained earnings, 12/31/21 (above) (876,000) (382.500) (1.004,500) NCI in Devine, 1/1 141,300 (141.300) NCI in Devine. 12/31 (171.200) (171.200) Total liabilities and equities $ (1.706,000) (802,500) $ 782.200 $ 782,200HOLTZ CORPORATION AND DEVINE, INC. Consolidated Income Statement For Year Ending December 31, 2021 $ 1, 143,000 Operating expenses 431,000 X Cost of goods sold 387,500 X Total expenses 818,500 Consolidated net income 324,500 To noncontrolling interest (25,900) X To Holtz Corporation 350,400