The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $7.20 per share on January 1, 2023. The remaining 20 percent of Devine’s shares also traded actively at $7.20 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 $85,500 and a fully amortized trademark with an estimated 10-year remaining life had a $64,000 fair value. At the acquisition date, Devine reported common stock of $100,000 and a retained earnings balance of $226,500.

Following are the separate financial statements for the year ending December 31, 2024:

At year-end, there were no intra-entity receivables or payables.a. Prepare a worksheet to consolidate these two companies as of December 31, 2024.b. Prepare a 2024 consolidated income statement for Holtz and Devine.c. If instead the noncontrolling interest shares of Devine had traded for $4.76 surrounding Holtz’s acquisition date, what is the impact on goodwill?

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Sales .... Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/24 Net income (above) Dividends declared Retained earnings, 12/31/24. Current assets.. Investment in Devine, Inc.. Buildings and equipment (net) Trademarks Total assets Liabilities Common stock Retained earnings, 12/31/24 (above) Total liabilities and equities Holtz Corporation $ (641,000) 198,000 273,000 (16,000) $ (186,000) $ (97,000) Devine, Inc. $(399,000) 176,000 126,000 -0- $(296,500) $ (762,000) (186,000) 70,000 (97,000) 20,000 $(878,000) $(373,500) $ 121,000 $ 120,500 576,000 -0- 887,000 149,000 335,000 236,000 $ 691,500 $(218,000) (320,000) (100,000) (878,000) (373,500) $(1,733,000) $(691,500) $ 1,733,000 $ (535,000)