The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $6.35 per share on January 1, 2017. 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 future 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, 2018:

	Holtz Corporation				Devine, Inc.
Sales	$	(721,000	)		$	(321,500	)
Cost of goods sold		227,000				108,000
Operating expenses		296,000				118,500
Dividend income		(16,000	)			0
Net income	$	(214,000	)		$	(95,000	)
Retained earnings, 1/1/18	$	(765,000	)		$	(310,500	)
Net income (above)		(214,000	)			(95,000	)
Dividends declared		80,000				20,000
Retained earnings, 12/31/18	$	(899,000	)		$	(385,500	)
Current assets	$	219,000			$	126,500
Investment in Devine, Inc		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	)
Retained earnings, 12/31/18 (above)		(899,000	)			(385,500	)
Total liabilities and equities	$	(1,791,500	)		$	(712,500	)

At year-end, there were no intra-entity receivables or payables. Prepare a 2018 consolidated income statement for Holtz and Devine.

HOLTZ CORPORATION AND DEVINE, INC.
Consolidated Income Statement
For Year Ending December 31, 2018
Sales		$1,042,500
Cost of goods sold	335,000
Operating expenses	436,100
Total expenses		771,100
Consolidated net income		$271,400
To noncontrolling interest		$54,280selected answer INCORRECT
To Holtz Corporation		$217,120