The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $6.00 per share on January 1, 2020. The remaining 20 percent of Devine's shares also traded actively at $6.00 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 $70,500 and a fully amortized trademark with an estimated 10-year remaining life had a $62,000 fair value. At the acquisition date, Devine reported common stock of $100,000 and a retained earnings balance of $158,500. Following are the separate financial statements for the year ending December 31, 2021: Devine, Inc. $ (316,080) 149,000 83,000 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 $ (731,000) 276,000 261, eee (16,880) $ (210,000) $ (748, 880) (210,000) 60,000 $ (898, 880) $ 372,500 488,888 720,000 193,000 $ 1,765,500 $ (547,500) (320,880) (898, 880) $ (1,765,500) $ (84,800) $ (228,500) (84,880) 20,000 $ (292,500) $ 170,500 324,000 153,000 $ 647,500 $ (255,280) (180,880) (292,500) $ (647,500) 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 $3.91 surrounding Holtz's acquisition date, what is the Impact on goodwill? Accounts Noncontrolling Interest Consolidated Totals HOLTZ CORPORATION AND DEVINE, INC. Consolidation Worksheet For Year Ending December 31, 2021 Holtz Devine Consolidation Entries Corporation Inc. Debit Credit S $ (731,000) (316,000) 276,000 149,000 261,000 83,000 (16,000) 0 $ (210,000) $ (84,000) S Sales 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. 1,047,000 425,000 344,000 278,000 40,600 209,000 IS Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 s (748,000) (210,000) 60,000 $ (898,000) IS (228,500) (84,000) 20.000 S (292,500) 80,000 S S S 170,500 0 543,000 0 Current assets Investment in Devine, Inc. Buildings and equipment (net) Trademarks Goodwill Total assets 372,500 480,000 20,000 193,000 0 1,044,000 346,000 324,000 153,000 0 $ 647,500 $ 1,765,500 S (547,500) S 802,500 (320,000) (898,000) S (255,000) (100,000) (292,500) 420,000 1,190,500 Liabilities Common stock Retained earnings, 12/31/21 (above) NCI in Devine, 1/1 NCI in Devine, 12/31 Total liabilities and equities 0 S (1,765,500) S (647,500) S 0 0 Prepare a 2021 consolidated income statement for Holtz and Devine. (Enter all amounts as positive values.) HOLTZ CORPORATION AND DEVINE, INC. Consolidated Income Statement For Year Ending December 31, 2021 Sales $ 1,047,000 Cost of goods sold 425,000 Operating expenses 344,000 Total expenses 769,000 Consolidated net income S 278,000 To noncontrolling interest S 28,400 To Holtz Corporation $ 249,600 If instead the noncontrolling interest shares of Devine had traded for $3.91 surrounding Holtz's acquisition date, what is the impact on goodwill? Goodwill decreases to