The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $7.40 per share on January 1, 2017. The remaining 20 percent of Devines shares also traded actively at $7.40 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 $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, 2018:

	Holtz Corporation				Devine, Inc.
Sales	$	(753,000	)		$	(416,000	)
Cost of goods sold		206,000				119,000
Operating expenses		315,000				129,000
Dividend income		(16,000	)			0
Net income	$	(248,000	)		$	(168,000	)
Retained earnings, 1/1/18	$	(705,000	)		$	(382,000	)
Net income (above)		(248,000	)			(168,000	)
Dividends declared		50,000				20,000
Retained earnings, 12/31/18	$	(903,000	)		$	(530,000	)
Current assets	$	282,000			$	252,000
Investment in Devine, Inc		592,000				0
Buildings and equipment (net)		845,000				431,000
Trademarks		159,000				162,000
Total assets	$	1,878,000			$	845,000
Liabilities	$	(655,000	)		$	(215,000	)
Common stock		(320,000	)			(100,000	)
Retained earnings, 12/31/18 (above)		(903,000	)			(530,000	)
Total liabilities and equities	$	(1,878,000	)		$	(845,000	)
At year-end, there were no intra-entity receivables or payables. A) Prepare a worksheet to consolidate these two companies as of December 31, 2018. B) Prepare a 2018 consolidated income statement for Holtz and Devine. C) If instead the noncontrolling interest shares of Devine had traded for $5.66 surrounding Holtzs acquisition date, what is the impact on goodwill?

Comple te this question by entering your answers in the tabs below. RequiredA Required B Required C Prepare a worksheet to consolidate these two companies as of December 31, 2018. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Amounts in the Debit and Credit columns should be entered as positive. Negative amounts for the Noncontrolling Interest and Consolidated Totals columns should be entered with a minus sign.) Show less HOLTZ CORPORATION AND DEVINE, INC Consolidation Worksheet For Year Ending December 31, 2018 Holtz Consolidation Entries Accounts Devine Inc. Debit Credit Interest Totals Sales (530(416,0 Cost of goods sold 20000 119,000 315,000 129,000 (16,000) Dividend income Separate company net income Consolidated net income s (248.000)68,000 NI attributable to noncontrolling interest NI attributable to Holtz Corp. Retained eamings, 1/1 Net income Dividends declared s (705,000)382000 (248,000) 168,000) 20,000 s (903,D00)(530,000 50,000 Retained eamings, 12/31 Current assets Investment in Devine Buildings and equipment (net) S 282,000S252,000 592.000 845,000 431,000 159,000 162,000 Goodwill Total assets S 1,878,000 S845,000 Liabilities Common stock Retained eamings, 12/31 NCI in Devine, 1/1 NCI in Devine, 12/31 (655,000)215,00 (320,000) 100,000) (903,000)(530,000) Total liabilties and equities 878 845000S