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:

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 Devine's shares also traded actively at $6.90 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 $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 Devine Inc Sales Cost of goods sold Operating expenses Dividend income Corporation $ (837,8) 292,8e8 324,80e 16,880 (394,508) 154,eee 79,588 Net income s (237,e0e) (161,e08) Retained earnings, 1/1/18 Net income (above) Dividends declared $ (767,808)(319,5e8) (161,88) (237,e08) 88,28,858 $(924, (468,5e8) Retained earnings, 12/31/18 Current assetS Investment in Devine, Inc Buildings and equipment (net) Trademarks $ 323,508 253,588 552,8e8 857,58e 151,888 488,888 195.8e s1,884,808 $856,508 Total assets Liabilities Common stock Retained earnings, 12/31/18 (above) (648,8) (296,808) (188,808) 469.508 $(1,884,8e8)(856,588) (328,888) 924,80e Total liabilities and equities At year-end, there were no intra-entity receivables or payables. a. Prepare a worksheet to consolidate these two companies as of December 31, 2018. c. If instead the noncontrolling interest shares of Devine had traded for $4.73 surrounding Holtz's acquisition date, what is the impact b. Prepare a 2018 consolidated income statement for Holtz and Devine. on goodwill? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required A Required B Required C Prepare a worksheet to consolidate these two companies as of December 31, 2018. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Amounts in the Debit and Credit columns should be entered as positive. Negative amounts for the Noncontrolling Interest and Consolidated Totals columns should be entered with a minus sign.) Show lessA HOLTZ C N AND DEVINE, INC. Worksheet For Year Ending December 31, 2018 Holtz Devine Inc Debit Consolidation Entries Credit Interest Totals Sales Cost of goods sold Operating expenses Dividend income (837.000)(394.500 292,000 154,000 79,500 324,000 (16,000) Separate company net income s (237.000)(181,000 Consolidated net income Nl attributable to noncontrolling interest NI attributable to Holtz Corp. 767000(319.500 Retained eanings, 1/1 Net income Dividends declared (237,000) (161,000) 80,000 20.000 Retained earnings, 12/31 s (924,000)(460.500 Current assets Investment in Devine Buildings and equipment (net) S 323,500 S 253,500 552,000 857,500408.000 151.000 195,000 Goodwil Total assets S 1,884,000S 856.500 (640,000) (298,000 (320,000)100,000) (924,000) (460,500) Common stock earnings, 12/31 NC in Devine, 11 NCI in Devine, 1231 Total liabilities and equities 1,884,000) (856,500 Required B> At year-end, there were no intra-entity receivables or payables e. Prepare a worksheet to consolidate these two companies as of December 31, 2018. b. Prepare a 2018 consolidated income statement for Holtz and Devine. c. If instead the noncontrolling interest shares of Devine had traded for $4.73 surrounding Holtz's acquisition date, what is the impact on goodwill? Complete this question by ente ring your answers in the tabs below Required A Required B Required C Prepare a 2018 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, 2018 Total expenses To noncontrolling interest To Holtz Corporation Following are the separate financial statements for the year ending December 31, 2018: Holtz Corporation $(837,) Devine Inc Sales Cost of goods sold Operating expenses Dividend income (394,580) 154,808 79,5ee 292,808 324,888 16,808 Net income (237,8) (161,8e8) Retained earnings, 1/1/18 Net income (above) Dividends declared (767,e88) (319, s88) (161,808) (237,808) 88,808 28,88 Retained earnings, 12/31/18 Current assets Investment in Devine, In Buildings and equipment (net) Trademarks S 323,58 253,588 552,8ee 857,588 s 1,884,88 (328,808) 488,888 51, 195, 808 856,588 Total assets Liabilities Common stock Retained earnings, 12/31/18 (above) S (648,) (296,808) (18e,808) (924.88) (469, 599) (1,884,88) (856,588) Total liabilities and equities At year-end, there were no intra-entity receivables or payables. a. Prepare a worksheet to consolidate these two companies as of December 31, 2018. b. Prepare a 2018 consolidated income statement for Holtz and Devine. c. if instead the noncontrolling interest shares of Devine had traded for S4.73 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 BRequired C If instead the noncontrolling interest shares of Devine had traded for $4.73 surrounding Holtz's acquisition date, what is the impact on goodwill?