On January 1, 2023, Holland Corporation paid $7 per share to a group of Zeeland Corporation...
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On January 1, 2023, 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 $5.50 per share both before and after the acquisition by Holland. Zeeland's acquisition date balance sheet follows: Current assets $ 15,100 Liabilities $ 228,500 Property and equipment (net) Patents 229,100 Common stock 204,300 Retained earnings 100,000 120,000 $ 448,500 $ 448,500 On January 1, 2023, Holland assessed the carrying amount of Zeeland's equipment (5-year remaining life) to be undervalued by $66,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $254,600. 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, 2024, follow: Complete this question by entering your answers in the tabs below. Req A and B Reg C Prepare a worksheet to determine the amounts that should appear on Holland's December 31, 2024, consolidated financial statements. Note: For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Input all amounts as positive values. Show less A HOLLAND CORPORATION AND ZEELAND CORPORATION Consolidation Worksheet For Year Ending December 31, 2024 Sales Cost of goods sold Account Depreciation expense Amortization expense Other operating expenses Equity in Zeeland earnings Separate company net income Retained earnings, 1/1 Net income Dividends declared Retained earnings, 12/31 Current assets Investment in Zeeland Property and equipment (net). Patents Total assets Liabilities Common stock-Holland Common stock-Zeeland Retained earnings, 12/31 Total liabilities and owners' equity Holland $ (769,200) 389,900 96,500 15,100 56,400 (49,404) $ (260,704) $ (821,300) (260,704) 50,000 $ (1,032,004) $ 126,100 551,928 848,000 151,200 $1,677,228 $ (325,224) Zeeland $ (439,500) 205,500 32,900 19,900 60,200 $ (121,000) $ (326,200) (121,000) 30,000 $ (417,200) $ 92,500 0 270,000 158,500 $ 521,000 $ (3,800) (320,000) (1,032,004) $ (1,677,228) At year-end, there were no Intra-entity receivables or payables. Required: (100,000) (417,200) $ (521,000) a1. Compute the amount of goodwill recognized In Holland's acquisition of Zeeland. a2 Show the allocation of goodwill to the controlling and noncontrolling interest. b. Show how Holland determined Its December 31, 2024, Investment in Zeeland account balance. c. Prepare a worksheet to determine the amounts that should appear on Holland's December 31, 2024, consolidated financial statements. Complete this question by entering your answers in the tabs below. Req A and B Req C Sales Cost of goods sold Depreciation expense Amortization expense Accounts Holland Zeeland Debit Consolidation Entries Credit Noncontrolling Interest Consolidated Totals $ (769,200) $ (439,500) 389,900 205,500 96,500 32,900 15,100 19,900 58,400 (49,404) 60,200 0 Other operating expenses Equity in Zeeland earnings Separate company net income Consolidated net income Noncontrolling interest in consolidated net income Controlling interest net income Retained earnings, 1/1 Net income Dividends declared $ (260,704) $ (121,000) S (821,300) $ (328,200) (260,704) 50,000 (121,000) 30,000 $ (1,032,004) $ (417,200) Goodwill Total assets Retained earnings, 12/31 Current assets S Investment in Zeeland, Incorporated 128,100 $ 92,500 551,928 0 Property and equipment (net) 848,000 Patents 151,200 270,000 158,500 $ 1,877,228 $ 521,000 (325,224) (3,800) (320,000) (100,000) (1,032,004) (417,200) $ (1,677,228) $ (521,000) S < Req A and B Req C > Liabilities Common stock Noncontrolling interest Retained earnings, 12/31 Total liabilities and equities 0 a1. Compute the amount of goodwill recognized in Holland's acquisition of Zeeland. a2. Show the allocation of goodwill to the controlling and noncontrolling interest. b. Show how Holland determined its December 31, 2024, Investment in Zeeland account balance. Note: Negative amounts should be shown with a minus sign. a1. Goodwill a2. Goodwill allocation Amount Controlling Interest Noncontrolling interest b. Initial Value b. Change in Zealand's Retained earnings Amount Show less A 100% + [1:1 On January 1, 2023, 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 $5.50 per share both before and after the acquisition by Holland. Zeeland's acquisition date balance sheet follows: Current assets $ 15,100 Liabilities $ 228,500 Property and equipment (net) Patents 229,100 Common stock 204,300 Retained earnings 100,000 120,000 $ 448,500 $ 448,500 On January 1, 2023, Holland assessed the carrying amount of Zeeland's equipment (5-year remaining life) to be undervalued by $66,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $254,600. 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, 2024, follow: Complete this question by entering your answers in the tabs below. Req A and B Reg C Prepare a worksheet to determine the amounts that should appear on Holland's December 31, 2024, consolidated financial statements. Note: For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Input all amounts as positive values. Show less A HOLLAND CORPORATION AND ZEELAND CORPORATION Consolidation Worksheet For Year Ending December 31, 2024 Sales Cost of goods sold Account Depreciation expense Amortization expense Other operating expenses Equity in Zeeland earnings Separate company net income Retained earnings, 1/1 Net income Dividends declared Retained earnings, 12/31 Current assets Investment in Zeeland Property and equipment (net). Patents Total assets Liabilities Common stock-Holland Common stock-Zeeland Retained earnings, 12/31 Total liabilities and owners' equity Holland $ (769,200) 389,900 96,500 15,100 56,400 (49,404) $ (260,704) $ (821,300) (260,704) 50,000 $ (1,032,004) $ 126,100 551,928 848,000 151,200 $1,677,228 $ (325,224) Zeeland $ (439,500) 205,500 32,900 19,900 60,200 $ (121,000) $ (326,200) (121,000) 30,000 $ (417,200) $ 92,500 0 270,000 158,500 $ 521,000 $ (3,800) (320,000) (1,032,004) $ (1,677,228) At year-end, there were no Intra-entity receivables or payables. Required: (100,000) (417,200) $ (521,000) a1. Compute the amount of goodwill recognized In Holland's acquisition of Zeeland. a2 Show the allocation of goodwill to the controlling and noncontrolling interest. b. Show how Holland determined Its December 31, 2024, Investment in Zeeland account balance. c. Prepare a worksheet to determine the amounts that should appear on Holland's December 31, 2024, consolidated financial statements. Complete this question by entering your answers in the tabs below. Req A and B Req C Sales Cost of goods sold Depreciation expense Amortization expense Accounts Holland Zeeland Debit Consolidation Entries Credit Noncontrolling Interest Consolidated Totals $ (769,200) $ (439,500) 389,900 205,500 96,500 32,900 15,100 19,900 58,400 (49,404) 60,200 0 Other operating expenses Equity in Zeeland earnings Separate company net income Consolidated net income Noncontrolling interest in consolidated net income Controlling interest net income Retained earnings, 1/1 Net income Dividends declared $ (260,704) $ (121,000) S (821,300) $ (328,200) (260,704) 50,000 (121,000) 30,000 $ (1,032,004) $ (417,200) Goodwill Total assets Retained earnings, 12/31 Current assets S Investment in Zeeland, Incorporated 128,100 $ 92,500 551,928 0 Property and equipment (net) 848,000 Patents 151,200 270,000 158,500 $ 1,877,228 $ 521,000 (325,224) (3,800) (320,000) (100,000) (1,032,004) (417,200) $ (1,677,228) $ (521,000) S < Req A and B Req C > Liabilities Common stock Noncontrolling interest Retained earnings, 12/31 Total liabilities and equities 0 a1. Compute the amount of goodwill recognized in Holland's acquisition of Zeeland. a2. Show the allocation of goodwill to the controlling and noncontrolling interest. b. Show how Holland determined its December 31, 2024, Investment in Zeeland account balance. Note: Negative amounts should be shown with a minus sign. a1. Goodwill a2. Goodwill allocation Amount Controlling Interest Noncontrolling interest b. Initial Value b. Change in Zealand's Retained earnings Amount Show less A 100% + [1:1
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Related Book For
Advanced Accounting
ISBN: 978-1259444951
13th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni
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