The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $6.35 per share on January 1, 2014. The remaining 20 percent of Devines shares also traded actively at $6.35 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 life was undervalued by $78,500 and a fully amortized trademark with an estimated 10-year remaining life had a $59,000 fair value. At the acquisition date, Devine reported common stock of $100,000 and a retained earnings balance of $240,500. Following are the separate financial statements for the year ending December 31, 2015:

	Holtz	Devine
Sales	(721,000)	(321,500)
COGS	227,000	108,000
Operating expenses	296,000	118,500
Dividend income	(16,000)	0
Net income	(214,000)	(95,000)
RE 1/1/15	(765,000)	(310,500)
NI (above)	(214,000)	(95,000)
Dividends Declared	80,000	20,000
RE 12/31/15	(899,000)	(385,500)
Current assets	219,000	126,500
investment in Devine	508,000	0
Buildings and equipment (net)	902,500	344,000
Trademarks	162,000	242,000
Total assets	1,791,500	712,500
Liabilities	(572,500)	(227,000)
common stock	(320,000)	(100,000)
RE 12/31/15 (above)	(899,000)	(385,500
Total liabilities and equities	(1,791,500)	(712,500)

a. Prepare a worksheet to consolidate these two companies as of December 31, 2015.

b. Prepare a 2015 consolidated income statement for Holtz and Devine

c. If instead the noncontrolling shares of Devine had traded for $4.78 surrounding Holtz's acquisition date, what is the impact on goodwill?