The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $7.15 per share on January 1, 2017. The remaining 20 percent of Devines shares also traded actively at $7.15 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 $75,500 and a fully amortized trademark with an estimated 10-year remaining life had a $63,000 fair value. At the acquisition date, Devine reported common stock of $100,000 and a retained earnings balance of $309,500.

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

	Holtz Corporation				Devine, Inc.
Sales	$	(742,000	)		$	(275,750	)
Cost of goods sold		208,000				110,000
Operating expenses		342,000				69,750
Dividend income		(16,000	)			0
Net income	$	(208,000	)		$	(96,000	)
Retained earnings, 1/1/18	$	(764,000	)		$	(379,500	)
Net income (above)		(208,000	)			(96,000	)
Dividends declared		60,000				20,000
Retained earnings, 12/31/18	$	(912,000	)		$	(455,500	)
Current assets	$	202,500			$	139,500
Investment in Devine, Inc		572,000				0
Buildings and equipment (net)		862,500				409,000
Trademarks		110,000				219,000
Total assets	$	1,747,000			$	767,500
Liabilities	$	(515,000	)		$	(212,000	)
Common stock		(320,000	)			(100,000	)
Retained earnings, 12/31/18 (above)		(912,000	)			(455,500	)
Total liabilities and equities	$	(1,747,000	)		$	(767,500	)

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

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

b.Prepare a 2018 consolidated income statement for Holtz and Devine.

c.If instead the noncontrolling interest shares of Devine had traded for $5.48 surrounding Holtzs acquisition date, what is the impact on goodwill?