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The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $7.70 per share on January 1, 2020. The remaining

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The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $7.70 per share on January 1, 2020. 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, 2021: Holtz Devine, Corporation 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, 1/1/21 $ (709,000) $ (360,000) Net income (above) (223,000) (125,000) Dividends declared 90,000 20,000 Retained earnings, 12/31/21 $ (842,000) $ (465,000) Current assets $ 166,000 $ 199,000 Investment in Devine, Inc. 616,000 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, 12/31/21 (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. 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 $5.46 surrounding Holtz's acquisition date, what is the impact on goodwill

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