The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $6.90 per share on January 1, 2017. The remaining 20 percent of Devines shares also traded actively at $6.90 per share before and after Holtzs acquisition. An appraisal made on that date determined that all book values appropriately reflected the fair values of Devines underlying accounts except that a building with a 5-year future life was undervalued by $52,500 and a fully amortized trademark with an estimated 10-year remaining life had a $71,000 fair value. At the acquisition date, Devine reported common stock of $100,000 and a retained earnings balance of $249,500.

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

	Holtz Corporation				Devine, Inc.
Sales	$	(837,000	)		$	(394,500	)
Cost of goods sold		292,000				154,000
Operating expenses		324,000				79,500
Dividend income		(16,000	)			0
Net income	$	(237,000	)		$	(161,000	)
Retained earnings, 1/1/18	$	(767,000	)		$	(319,500	)
Net income (above)		(237,000	)			(161,000	)
Dividends declared		80,000				20,000
Retained earnings, 12/31/18	$	(924,000	)		$	(460,500	)
Current assets	$	323,500			$	253,500
Investment in Devine, Inc		552,000				0
Buildings and equipment (net)		857,500				408,000
Trademarks		151,000				195,000
Total assets	$	1,884,000			$	856,500
Liabilities	$	(640,000	)		$	(296,000	)
Common stock		(320,000	)			(100,000	)
Retained earnings, 12/31/18 (above)		(924,000	)			(460,500	)
Total liabilities and equities	$	(1,884,000	)		$	(856,500	)

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 $4.73 surrounding Holtzs acquisition date, what is the impact on goodwill?