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 Devine's shares also traded actively at $6.55 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 $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: Devine, Inc. $ (439,000) 171,000 120,000 Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/18 Net income (above) Dividends declared Retained earnings, 12/31/18 Current assets Investment in Devine, Inc Buildings and equipment (net) Trademarks Total assets Liabilities Common stock Retained earnings, 12/31/18 (above) Total liabilities and equities Holtz Corporation $ (704,000) 260,000 249,000 (16,000) $ (211,000) $ (735,000) (211,000) 70,000 $ (876,000) 194,500 524,000 837,500 150,000 $ 1,706,000 $ (510,000) (320,000) (876,000) $(1,706,000) $ (148,000) $ (264,500) (148,000) 20,000 $ (392,500) $ 201,500 0 332,000 159,000 $ 692,500 $ (200,000) (100,000) (392,500) $ (692,500) 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 $4.20 surrounding Holtz's acquisition date, what is the impact on goodwill? Accounts Noncontrolling Consolidated Interest Totals Sales Consolidation Worksheet For Year Ending December 31, 2018 Holtz Consolidation Entries Devine Inc. Corporation Debit Credit $ (704,000) (439,000) 260,000 171,000 249,000 120,000 (16,000) 0 $ (211,000) (148,000) Cost of goods sold Operating expenses Dividend income Separate company net income $ 0 Consolidated net income Ni attributable to noncontrolling interest NI attributable to Holtz Corp. Retained earnings, 1/1 Net income Dividends declared $ (735,000) (211,000) 70,000 $ (876,000) (264,500) (148,000)| 20,000 Retained earnings, 12/31 (392,500) $ Current assets Investment in Devine Buildings and equipment (net) Trademarks Goodwill Total assets 194,500 524,000 837,500 150,000 ol $ 201,500 0 332,000 159,000 01 $ 692,500 $ 1,706,000 Liabilities $ (510,000) (320,000) (876,000) (200,000) (100,000) (392,500) Common stock Retained earnings, 12/31 NCI in Devine, 1/1 NCI in Devine, 12/31 Total liabilities and equities 4.706.000 692,500 $ $ 0 Prepare a 2018 consolidated income statement for Holtz and Devine. HOLTZ CORPORATION AND DEVINE, INC. Consolidated Income Statement For Year Ending December 31, 2018 Total expenses To noncontrolling interest To Holtz Corporation If instead the noncontrolling interest shares of Devine had traded for $4.20 surrounding Holtz's acquisition date, what is the impact on goodwill? Goodwill