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The Holtz Corporation acquired 80 percent of the 100.000 outstanding voting shares of Devine, Inc., for $7.35 per share on January 1, 2017. The remaining 20 percent of Devine's shares also traded actively at $7.35 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 $70,000 and a fully amortized trademark with an estimated 10-year remaining life had a $70,000 fair value. At the acquisition date, Devine reported common stock of $100.000 and a retained earnings balance of $264.000. Following are the separate financial statements for the year ending December 31, 2018: Devine, Inc. $(371,000) 173,000 96,000 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 $ (741,000) 218,000 292,000 (16,000) $ (247,000) $ (792,000) (247,000) 50,000 $ (989,000) 468,000 588,000 842,500 123,000 $ 2,021,500 $ (712,500) (320,000) (989,000) $(2,021,500) $(102,000) $(334,000) (102,000) 20,000 $(416,000) $ 176,000 379,000 233,000 $ 788,000 $(272,000) (100,000) (416,000) $(788,000) 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 $5.04 surrounding Holtz's acquisition date, what is the impact on goodwill? Accounts HOLTZ CORPORATION AND DEVINE, INC. Consolidation Worksheet For Year Ending December 31, 2018 Holtz Consolidation Entries Corporation Devine Inc. Debit Credit $ (741,000) (371.000) 218,000 173.000 292,000 98.000 (16.000) 0 Noncontrolling Consolidated Interest Totals 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. $ (247.000) (102,000) Retained earnings. 1/1 $ (792.000) 334.000) Net income Dividends declared Retained earnings, 12/31 (247.000) 50.000 (102,000) 20.000 $ (989.000) (418,000) $ 178,000 Current assets Investment in Devine Buildings and equipment (net) Trademarks Goodwill Total assets $ 488,000 588,000 842,500 123.000 0 $2,021,500 379.000 233.000 0 $ 788.000 Liabilities $ (712,500) (320.000) (989,000) (272,000) (100.000) (416,000) Common stock Retained earnings, 12/31 NCI in Devine, 1/1 NCI in Devine, 12/31 Total liabilities and equities 2.021.500) 788,000) Required A Required B Required C Prepare a 2018 consolidated income statement for Holtz and Devine. (Enter all amounts as positive values.) HOLTZ CORPORATION AND DEVINE, INC. Consolidated Income Statement For Year Ending December 31, 2018 Total expenses To noncontrolling interest To Holtz Corporation

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