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On January 1, 2017, Holland Corporation paid $7 per share to a group of Zeeland Corporation shareholders to acquire 60,000 shares of Zeeland's outstanding voting stock, representing a 60 percent ownership interest. The remaining 40,000 shares of Zeeland continued to trade in the market close to its recent average of $5.00 per share both before and after the acquisition by Holland. Zeeland's acquisition date balance sheet follows: Current assets Property and equipment (net) Patents $ 16,400 210,400 221,200 $ 448,000 Liabilities Common stock Retained earnings $ 248,000 100,000 100,000 $ 448,000 On January 1, 2017, Holland assessed the carrying amount of Zeeland's equipment (5-year remaining life) to be undervalued by $43,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $246,400. Zeeland's acquisition date fair values for its current assets and liabilities were equal to their carrying amounts. Any remaining excess of Zeeland's acquisition-date fair value over its book value was attributed to goodwill. The companies' financial statements for the year ending December 31, 2018, follow. $ Sales Cost of goods sold Depreciation expense Amortization expense Other operating expenses Equity in Zeeland earnings Separate company net income Holland (500, 700) 254,100 62,500 16,400 61,600 60,456 (166,556) Zeeland $(452,500) 212,000 31,600 18,600 56.300 $(134,000) Retained earnings 1/1 Net Income Dividends declared $(022,600) (166,556) 50.000 $(361,300) (134,000) 30,000 Equity in Zeeland earnings Separate company net income (60,456) (166,556) $ $(134,000) Retained earnings 1/1 Net income Dividends declared Retained earnings 12/31 $ (822,600) (166,556) 50.000 $ (939,156) $(361,300) (134,000) 30.000 $(465,300) Current assets Investment in Zeeland Property and equipment (net) Patents Total assets $ 127,400 599,292 861,000 153,800 $ 1,741, 492 $ 105,500 0 283,000 180,500 $ 569,000 ances Liabilities Common stock - Holland Common stock - Zeeland Retained earnings 12/31 Total liabilities and owners equity $ (482,336) (320,000) 0 (939, 156) $(1,741, 492) $ (3,700) 0 (100,000) (465.300) S (569.000) At year-end, there were no intra-entity receivables or payables. a. Compute the amount of goodwill recognized in Holland's acquisition of Zeeland and the allocation of goodwill to the controlling and noncontrolling interest. b. Show how Holland determined its December 31, 2018, Investment in Zeeland account balance. c. Prepare a worksheet to determine the amounts that should appear on Holland's December 31, 2018, consolidated financial statements. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg A and B Reqc a. Compute the amount of goodwill recognized in Holland's acquisition of Zeeland and the allocation of goodwill to the controlling and noncontrolling interest. b. Show how Holland determined its December 31, 2018, Investment in Zeeland account balance. Amount 130,600 a 1. Goodwill $ NCI Controlli Interest 126,360 Goodwill allocation $ 4,240 Amount $ 489,400 Investment in Zeeland 12/31/18 Noncontrolling Interest Consolidated Totals Accounts HOLLAND CORPORATION AND ZEELAND CORPORATION Consolidation Worksheet For Yoar Ending December 31, 2018 Consolidation Entries Holland Zeeland Debit Credit $ 500,700) $ (452,500) 254,100 212,000 62,500 31,600 16,400 18,600 61,600 56,300 (60,456) 0 $ (166,556) $ (134,000) 0 Sales Cost of goods sold Depreciation expense Amortization expense Other operating expenses Equity in Zeeland earnings Separate company net income Consolidated net income Noncontrolling interest in CNI Controling interest net income Retained earnings, 1/1/18 Net Income Dividends declared Retained earnings, 12/31 Current assets Investment in Zeeland, Inc Property and equipment (net) S 0 $ 822,600) (166,656) 50,000 $ (939,156) $ 127,400 500,292 861,000 $(361,300) (134,000) 30,000 S (465,300) $ 105,500 0 283,000 $ 0 ER FA Return to go $ (166,556) $ (134,000) $ 0 $ 0 $ 0 Separate company net income Consolidated net income Noncontrolling interest in CNI Controlling interest net income Retained earnings, 1/1/18 Net Income Dividends declared Retained earnings, 12/31 Current assets Investment in Zeeland, Inc Property and equipment (net) Patents Goodwill Total assets Liabilities Common stock Noncontrolling interest Retained earnings, 12/31 Total liabilities and equities $ (822,600) (166,556) 50,000 $ (939,156) $ 127,400 599,292 861,000 153,800 0 $ 1,741,492 (482,336) (320,000) $ (361,300) (134,000) 30,000 $ (465,300) $ 105,500 0 283,000 180,500 0 $ 569,000 (3,700) (100,000) S 0 (939,156) $ (1.741.492 (465,300) $ (569,000) s 0 $ 0 $ 0

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