The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $7.60 per share on January 1, 2014. The remaining 20 percent of Devines shares also traded actively at $7.60 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 life was undervalued by $72,500 and a fully amortized trademark with an estimated 10-year remaining life had a $77,000 fair value. At the acquisition date, Devine reported common stock of $100,000 and a retained earnings balance of $348,500.

Following are the separate financial statements for the year ending December 31, 2015

		Holtz Corporation				Devine, Inc.
Sales		$	(614,000	)		$	(408,250	)
Cost of goods sold			216,000				174,000
Operating expenses			251,000				122,250
Dividend income			(16,000	)			0
Net income		$	(163,000	)		$	(112,000	)
Retained earnings, 1/1/15		$	(712,000	)		$	(418,500	)
Net income (above)			(163,000	)			(112,000	)
Dividends declared			80,000				20,000
Retained earnings, 12/31/15		$	(795,000	)		$	(510,500	)
Current assets		$	322,000			$	305,500
Investment in Devine, Inc			608,000				0
Buildings and equipment (net)			710,000				436,000
Trademarks			189,000				142,000
Total assets		$	1,829,000			$	883,500
Liabilities		$	(714,000	)		$	(273,000	)
Common stock			(320,000	)			(100,000	)
Retained earnings, 12/31/15 (above)			(795,000	)			(510,500	)
Total liabilities and equities		$	(1,829,000	)		$	(883,500	)

a.	Prepare a worksheet to consolidate these two companies as of December 31, 2015

HOLTZ CORPORATION AND DEVINE, INC.
Consolidation Worksheet
For Year Ending December 31, 2015
			Consolidation Entries		Noncontrolling Interest	Consolidated Totals
Accounts	Holtz Corporation	Devine Inc.	Debit	Credit
Sales	(614,000)	(408,250)
Cost of goods sold	216,000	174,000
Operating expenses	251,000	122,250
Dividend income	(16,000)
Separate company net income	(163,000)	(112,000)
Consolidated net income
NCI in consolidated net income
Holtzs interest in consolidated net income
Retained earnings, 1/1	(712,000)	(418,500)
Net income	(163,000)	(112,000)
Dividends declared	80,000	20,000
Retained earnings, 12/31	(795,000)	(510,500)
Current assets	322,000	305,500
Investment in Devine	608,000
Buildings and equipment (net)	710,000	436,000
Trademarks	189,000	142,000
Goodwill	0	0
Total assets	1,829,000	883,500
Liabilities	(714,000)	(273,000)
Common stock	(320,000)	(100,000)
Retained earnings, 12/31	(795,000)	(510,500)
NCI in Devine, 1/1
NCI in Devine, 12/31
Total liabilities and equities	(1,829,000)	(883,500)

b.

Prepare a 2015 consolidated income statement for Holtz and Devine. HOLTZ CORPORATION AND DEVINE, INC. Consolidated Income Statement For Year Ending December 31, 2015 Sales Cost of goods sold Operating expenses Total expenses Consolidated net income Noncontrolling interest in CNI Controlling interest in CNI