The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $6.20 per share on January 1, 2020. The remaining 20 percent of Devine's shares also traded actively at $6.20 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 $51,000 and a fully amortized trademark with an estimated 10 year remaining life had a $87,000 fair value. At the acquisition date, Devine reported common stock of $100,000 and a retained earnings balance of $147,000 Following are the separate financial statements for the year ending December 31, 2021: Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/21 Net income (above) Dividends declared Retained earnings, 12/31/21 Current assets Investment in Devine, Inc. Buildings and equipment (net) Trademarks Total assets Liabilities Common stock Retained earnings, 12/31/21 (above) Total liabilities and equities Holtz Corporation $ (774,000) 247,000 304,000 (16,000) $ (239,000) $ (721,000) (239,000) 50,000 $ (910,000) $ 386,000 496,000 805,000 163,000 $ 1,850,000 $ (620,000) (320,000) (910,000) $ (1,850,000) Devine, Inc. $ (315,500) 122,000 100,500 0 $ (93, 000) $ (217,000) (93, 000) 20,000 $ (290,000) $ 149,000 0 320,000 203,000 $ 672,000 $ (282,000) (100,000) (290,000) $ (672,000) At year-end, there were no intra-entity receivables or payables. Accounts Noncontrolling Interest Consolidated Totals HOLTZ CORPORATION AND DEVINE, INC. Consolidation Worksheet For Year Ending December 31, 2021 Holtz Devino Consolidation Entries Corporation Inc. Debit Credit $ $ (774,000) (315,500) 247,000 122,000 304,000 100,500 18.900 (16,000) 0 16,000 $ (239,000) S (93,000) Sales $ (1,089,500) 369,000 423,400 0 Cost of goods sold Operating expenses Dividend income Separate company net income Consolidated net income NI attributable to noncontrolling interest Ni attributable to Holtz Corp. $ (14,820) 297.100 14,820 (282,280) $ Retained earnings, 1/1/21 217,000 40,880 $ Net Income $ (721,000) (239,000) 50,000 $ (910,000) S (217.000) (93,000) 20,000 IS 10 Anny (761,880) (282,280) 50,000 Dividends declared 16,000 4,000 Retained earnings, 12/31/21 $ (994,160) d 2021 con Ildated income statement for Holtz and Devine. HOLTZ CORPORATION AND DEVINE, INC. Consolidated Income Statement For Year Ending December 31, 2021 Sales $ 1,089,500 Cost of goods sold 369,000 Operating expenses 423,400 Total expenses 792,400 Consolidated net income $ 297,100 To noncontrolling interest $ (14,820) X To Holtz Corporation $ 311,920 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 $3.85 surrounding Holtz's acquisition date, what is the impact on goodwill? Complete this question by entering your answers in the tabs below. Required A Required B Required Prepare a worksheet to consolidate these two companies as of December 31, 2021. (For accounts where multiple consolidation entries are require combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into or amount and enter this amount in the credit column of the worksheet. Input all amounts as positive values.)