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Accounts Noncontrolling Consolidated Interest Totals HOLTZ CORPORATION AND DEVINE, INC. Consolidation Worksheet For Year Ending December 31, 2021 Holtz Consolidation Entries Devine Inc. Corporation Debit Credit $ (837,000) $ (394,500) 292,000 154,000 324,000 79,500 (16,000) 0 $ (237,000) $ (161,000) Sales Cost of goods sold Operating expenses Dividend income Separate company net income Consolidated net income Nl attributable to noncontrolling interest NI attributable to Holtz Corp. Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 $ (767,000) $ (319,500) (237,000) (161,000) 80,000 20,000 $ (924,000) $ (460,500) $ Current assets Investment in Devine, Inc. Buildings and equipment (net) Trademarks Goodwill Total assets 323,500 $ 253,500 552,000 857,500 408,000 151,000 195,000 0 0 $ 1,884,000 $ 856,500 Liabilities $ (640,000) $ (296,000) (320,000) (100,000) (924,000) (460,500) Common stock Retained earnings, 12/31/21 (above) NCI in Devine, 1/1 NCI in Devine, 12/31 Total liabilities and equities 0 $ (1,884,000) $ (856,500) $ 0 $ 0 The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $6.90 per share on January 1, 2020. The remaining 20 percent of Devine's shares also traded actively at $6.90 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 $52,500 and a fully amortized trademark with an estimated 10-year remaining life had a $71,000 fair value. At the acquisition date, Devine reported common stock of $100,000 and a retained earnings balance of $249,500. Following are the separate financial statements for the year ending December 31, 2021: Devine, Inc. $ (394,500) 154,000 79,500 Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/21 Net income (above) Dividends declared Retained earnings, 12/31/21 Current assets Investment in Devine, Inc. Buildings and equipment (net) Trademarks Total assets Liabilities Common stock Retained earnings, 12/31/21 (above) Total liabilities and equities Holtz Corporation $ (837,000) 292,000 324,000 (16,000) $ (237,000) $ (767,000) (237,000) 80,000 $ (924,000) $ 323,500 552,000 857,500 151,000 $ 1,884,000 $ (640,000) (320,000) (924,000) $ (1,884,000) $ (161,000) $ (319,500) (161, 000) 20,000 $ (460,500) $ 253,500 408,000 195,000 $ 856,500 $ (296,000) (100,000) (460,500) $ (856,500) At year-end, there were no intra-entity receivables or payables. a. Prepare a worksheet to consolidate these two companies as of December 31, 2021. b. Prepare a 2021 consolidated income statement for Holtz and Devine. c. If instead the noncontrolling interest shares of Devine had traded for $4.73 surrounding Holtz's acquisition date, what is the impact on goodwill
