The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $6.40 per share on January 1, 2017. The remaining 20 percent of Devines shares also traded actively at $6.40 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 $62,000 and a fully amortized trademark with an estimated 10-year remaining life had a $67,000 fair value. At the acquisition date, Devine reported common stock of $100,000 and a retained earnings balance of $260,000.

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

	Holtz Corporation				Devine, Inc.
Sales	$	(787,000	)		$	(392,000	)
Cost of goods sold		282,000				105,000
Operating expenses		346,000				117,000
Dividend income		(16,000	)			0
Net income	$	(175,000	)		$	(170,000	)
Retained earnings, 1/1/18	$	(727,000	)		$	(330,000	)
Net income (above)		(175,000	)			(170,000	)
Dividends declared		50,000				20,000
Retained earnings, 12/31/18	$	(852,000	)		$	(480,000	)
Current assets	$	379,500			$	162,000
Investment in Devine, Inc		512,000				0
Buildings and equipment (net)		785,000				422,000
Trademarks		148,000				206,000
Total assets	$	1,824,500			$	790,000
Liabilities	$	(652,500	)		$	(210,000	)
Common stock		(320,000	)			(100,000	)
Retained earnings, 12/31/18 (above)		(852,000	)			(480,000	)
Total liabilities and equities	$	(1,824,500	)		$	(790,000	)

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

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

2) Prepare a 2018 consolidated income statement for Holtz and Devine.

3) If instead the noncontrolling interest shares of Devine had traded for $4.89 surrounding Holtzs acquisition date, what is the impact on goodwill?

HOLTZ CORPORATION AND DEVINE, INC. Consolidation Worksheet For Year Ending December 31, 2018 Holtz Corporation Inc. Consolidation Entries Debit Credit Devine Noncontrolling Consolidated Accounts Interest Totals S (787,00039,000 282,000 105,000 346,000 117,000 0 Sales Cost of goods sold Operating expenses Dividend income Separate company net ncome Consolidated net income (16,000) $ (175,000) 170,000 NI attributable to noncontrolling interest NI attributable to Holtz Cor Retained earnings, 1/1 Net income Dividends declared (727,000) 330,000 (175,000)|(170,000) 50,00020,000 s (852,000) 480,000 Retained earnings, 12/31 Current assets s 379,500 162,000 Investment in Devine 512,000 0 Buildings and equipment net Trademarks Goodwill 785,000 422,000 148,000206,000 0 $1,824,5001 700,000 0 Total assets Liabilities S (652,500 210.000 Common stock Retained earnings, 12/31 NCI in Devine, 1/1 NCI in Devine, 12/31 (320,000)|(100,000) (852,000) (480,000) Total liabilities and equities 1,824,500) (790,000