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The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $740 per share on January 1, 2020. The remaining

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The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $740 per share on January 1, 2020. The remaining 20 percent of Devine's shares also traded actively at $7.40 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 $82,000 and a fully amortized trademark with an estimated 10-year remaining life had a $72,000 fair value. At the acquisition date, Devine reported common stock of $100,000 and a retained earnings balance of $312.000 Following are the separate financial statements for the year ending December 31, 2021 Holt Devine, Corporation Inc Sales $(753,000) 5 (416,000) Cost of goods sold 205,000 119,000 Operating expenses 315,000 129,000 Dividend income (16,000) wat income 5 (240,000) $ (160,000) Retained earnings, 1/1/21 $ (795,000 $(303,000) Net Income (above) (245.000 (168,000 Dividends declared 30,000 20.000 Retained earnings, 12/31/21 5 (903,000) $530,000) Current assets $ 202,000 5252.000 Investment in Devine, Inc. 592,000 Buildings and equipment (net) 345,000 431,000 Trademarks 159,00 162.000 Total assets 5 1.078,000 $ 145,000 Liabilities $ 655.000 (215,000 Comon stock (320,000) (100,000) Retained earnings. 12/31/21 (above) (923,000) (530,000) Total liabilities and equities $(1,170,000) $ 145,000) 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 $5.66 surrounding Holtz's acquisition date, what is the impact on goodwill

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