The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $7.70 per share on January 1, 2017. The remaining 20 percent of Devine's shares also traded actively at $7.70 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 $81,000 and a fully amortized trademark with an estimated 10-year remaining life had a $75,000 fair value. At the acquisition date, Devine reported common stock of $100,000 and a retained earnings balance of $290,000.

Following are the separate financial statements for the year ending December 31, 2018:

Holtz Corporation Devine,Inc.

Sales $(760,000) $(365,250)

Cost of goods sold 234,000 133,000

Operating expenses 319,000 107,250

Dividend income (16,000) 0

Net income$ (223,000) $(125,000)

Retained earnings, 1/1/18 $(709,000) $(360,000)

Net income (above) (223,000) (125,000)

Dividends declared 90,000 20,000

Retained earnings, 12/31/18 $(842,000) $(465,000)

Current assets $166,000 $199,000

Investment in Devine, Inc 616,000 0

Buildings and equipment (net) 905,000 389,000

Trademarks 160,000 226,000

Total assets $1,847,000 $814,000

Liabilities $(685,000) $(249,000)

Common stock (320,000) (100,000)

Retained earnings, 12/31/18 (above) (842,000) (465,000)

Total liabilities and equities $(1,847,000) $(814,000)

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

1. Prepare a worksheet to consolidate these two companies as of December 31, 2018.
2. Prepare a 2018 consolidated income statement for Holtz and Devine.
3. If instead the noncontrolling interest shares of Devine had traded for $5.46 surrounding Holtz's acquisition date, what is the impact on goodwill?