The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $7.10 per share on January 1, 2020. The remaining 20 percent of Devine's shares also traded actively at $7.10 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 $50,000 and a fully amortized trademark with an estimated 10-year remaining life had a $80,000 fair value. At the acquisition date, Devine reported common stock of $100,000 and a retained earnings balance of $292,000.

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

Holtz

CorporationDevine,

Inc.Sales$(761,000)$(396,750)Cost of goods sold267,000124,000Operating expenses258,000114,750Dividend income(16,000)0Net income$(252,000)$(158,000)Retained earnings, 1/1/21$(744,000)$(362,000)Net income (above)(252,000)(158,000)Dividends declared80,00020,000Retained earnings, 12/31/21$(916,000)$(500,000)Current assets$294,000$161,000Investment in Devine, Inc.568,0000Buildings and equipment (net)810,000483,000Trademarks164,000180,000Total assets$1,836,000$824,000Liabilities$(600,000)$(224,000)Common stock(320,000)(100,000)Retained earnings, 12/31/21 (above)(916,000)(500,000)Total liabilities and equities$(1,836,000)$(824,000)

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

1. Prepare a worksheet to consolidate these two companies as of December 31, 2021.
2. Prepare a 2021 consolidated income statement for Holtz and Devine.
3. If instead the noncontrolling interest shares of Devine had traded for $5.22 surrounding Holtz's acquisition date, what is the impact on goodwill?