The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $6.50 per share on January 1, 2017. The remaining 20 percent of Devine's shares also traded actively at $6.50 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 $91,500 and a fully amortized trademark with an estimated 10-year remaining life had a $82,000 fair value. At the acquisition date, Devine reported common stock of $100,000 and a retained earnings balance of $209,500. Following are the separate financial statements for the year ending December 31, 2018: Devine, Inc. $ (386,000) 193,000 108,000 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 $ (746,000) 272,000 286,000 (16,000) $ (204,000) $ (718,000) (204,000) 60,000 $ (862,000) 190,500 520,000 824,000 140,000 $ 1,674,500 $ (492,500) (320,000) (862,000) $(1,674,500) $ (85,000) $ (279,500) (85,000) 20,000 $ (344,500) $ 121,500 328,000 215,000 $ 664,500 $ (220,000) (100,000) (344,500) $ (664,500) 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 $4.83 surrounding Holtz's acquisition date, what is the impact on goodwill? Holtz Accounts Devine Inc. Noncontrolling Consolidated Interest Totals HOLTZ CORPORATION AND DEVINE, INC. Consolidation Worksheet For Year Ending December 31, 2018 Consolidation Entries Corporation Debit Credit $ (746,000) (386,000) 272,000 193,000 286,000 108,000 (16,000) $ (204,000) S (85,000) Sales Cost of goods sold Operating expenses Dividend income Separate company net income Consolidated net income Ni attributable to noncontrolling interest Ni attributable to Holtz Corp. Retained earnings, 1/1 Net income Dividends declared Retained earnings, 12/31 $ (718,000) (204,000) 60,000 $ (862,000) (279,500) (85,000) 20,000 344.500) $ $ 121,500 Current assets Investment in Devine Buildings and equipment (net) Trademarks Goodwill Total assets 190,500 520,000 824,000 140,000 328,000 215,000 $ 1,674,500 $ 664,500 $ (492,500) (220,000) (320,000) (862,000) (100,000) (344,500) Liabilities Common stock Retained earings, 12/31 NCI in Devine, 1/1 NCI in Devine, 12/31 Total liabilities and equities 0.674,500) (664,500 $ Required B > Required A Required B Required C Prepare a 2018 consolidated income statement for Holtz and Devine. (Enter all amounts as HOLTZ CORPORATION AND DEVINE, INC. Consolidated Income Statement For Year Ending December 31, 2018 Total expenses 0 $ To noncontrolling interest To Holtz Corporation ( Required A Required C > Required A Required B Required If instead the noncontrolling interest shares of Devine had traded for $4.83 surrounding Holtz's a impact on goodwill? Goodwill