The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $7.00 per share on January 1, 2020. The remaining 20 percent of Devines shares also traded actively at $7.00 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 $65,000 and a fully amortized trademark with an estimated 10-year remaining life had a $73,000 fair value. At the acquisition date, Devine reported common stock of $100,000 and a retained earnings balance of $237,000.

Following are the separate financial statements for the year ending December 31, 2021:

	Holtz Corporation				Devine, Inc.
Sales	$	(728,000	)		$	(304,000	)
Cost of goods sold		232,000				136,000
Operating expenses		334,000				74,000
Dividend income		(16,000	)			0
Net income	$	(178,000	)		$	(94,000	)
Retained earnings, 1/1/21	$	(776,000	)		$	(307,000	)
Net income (above)		(178,000	)			(94,000	)
Dividends declared		70,000				20,000
Retained earnings, 12/31/21	$	(884,000	)		$	(381,000	)
Current assets	$	402,000			$	179,000
Investment in Devine, Inc.		560,000				0
Buildings and equipment (net)		790,000				323,000
Trademarks		152,000				225,000
Total assets	$	1,904,000			$	727,000
Liabilities	$	(700,000	)		$	(246,000	)
Common stock		(320,000	)			(100,000	)
Retained earnings, 12/31/21 (above)		(884,000	)			(381,000	)
Total liabilities and equities	$	(1,904,000	)		$	(727,000	)

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 $4.75 surrounding Holtzs acquisition date, what is the impact on goodwill?