The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $6.55 per share on January 1, 2017. The remaining 20 percent of Devines shares also traded actively at $6.55 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 $59,500 and a fully amortized trademark with an estimated 10-year remaining life had a $66,000 fair value. At the acquisition date, Devine reported common stock of $100,000 and a retained earnings balance of $194,500.

Following are the separate financial statements for the year ending December 31, 2018:

	Holtz Corporation				Devine, Inc.
Sales	$	(704,000	)		$	(439,000	)
Cost of goods sold		260,000				171,000
Operating expenses		249,000				120,000
Dividend income		(16,000	)			0
Net income	$	(211,000	)		$	(148,000	)
Retained earnings, 1/1/18	$	(735,000	)		$	(264,500	)
Net income (above)		(211,000	)			(148,000	)
Dividends declared		70,000				20,000
Retained earnings, 12/31/18	$	(876,000	)		$	(392,500	)
Current assets	$	194,500			$	201,500
Investment in Devine, Inc		524,000				0
Buildings and equipment (net)		837,500				332,000
Trademarks		150,000				159,000
Total assets	$	1,706,000			$	692,500
Liabilities	$	(510,000	)		$	(200,000	)
Common stock		(320,000	)			(100,000	)
Retained earnings, 12/31/18 (above)		(876,000	)			(392,500	)
Total liabilities and equities	$	(1,706,000	)		$	(692,500	)

At year-end, there were no intra-entity receivables or payables.

Prepare a worksheet to consolidate these two companies as of December 31, 2018.

Prepare a 2018 consolidated income statement for Holtz and Devine.

If instead the noncontrolling interest shares of Devine had traded for $4.20 surrounding Holtzs acquisition date, what is the impact on goodwill?