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The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $730 per share on January 1, 2020. The remaining 20 percent of Devine's shares also traded actively at $730 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 $64,500 and a fully amortized trademark with an estimated 10 year remaining life had a $84.000 fir value. At the acquisition date, Devine reported common stock of $100,000 and a retained earnings balance of $333,500 Following are the separate financial statements for the year ending December 31, 2021 Devine Inc $ 140, 250) 166,000 83,250 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 Holt Corporation 3 (674,000) 233,000 275,000 (16,000 5 (182,000) 3 (783, 009 (182,900) 70, NO $ (895,000) $ 301,000 584,000 825,000 115,000 52,825,000 (610,000 (320,000 (895,000) 5 (1,825,000 $(91.000) 3 (40, 500 (91,000 20.00 $ (474,500) S190500 423,000 181,00 $800, 500 5 (226,000 (100,000) (474 500) $ (800,500) 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 Sales Cost of goods sold Operating expenses Dividend income Separate company net income Consolidated net income Ni attributable to noncontrolling interest Ni attributable to Holt Corp $ (674,000) $ (340,250) 233.000 168,000 275.000 83,250 (16,000) 0 $ (182,000) (91,000) Retained earings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 $ 783,000) (403,500) (180,000) 191.000) 70.000 20.000 $(895.000) (474,500) Current assets Investment in Devine, Inc Buildings and equipment (net) Trademarks Goodwill Total assets $ 301.000 100.500 584,000 0 325,000 423,000 115,000 181,000 0 $ 1,825,000 $300.500 Liabilities $ (610,000) (220,000) (320,000) (100,000) (895.000) (474,500) (Common stock Retained earnings, 12/31/21 (above) NC in Devine, 1/1 NC in Devine, 12/31 Total liabilities and equities $(1,825,000) S (800,500 $ OS Complete this question by entering your answers in the tabs below. Required A Required B Required Prepare a 2021 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, 2021 Total expenses 0 s 0 To noncontrolling interest To Holt Corporation $ 0 Complete this question by entering your answers in the tabs below. Required A Required B Required If instead the noncontrolling interest shares of Devine had traded for $5.82 surrounding Holtz's acquisition date, what is the impact on goodwill? Good

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