PLEASE COMPLETE REQ A & B & C: The Holtz Corporation acquired $80$ percent of the $100,000$ outstanding voting shares of Devine, Inc., for $$6\mathrm{.}50$ per share on January $1,2020.$ The remaining $20$ percent of Devine$$s shares also traded actively at $$6\mathrm{.}50$ per share before and after Holtz$$s acquisition. An appraisal made on that date determined that all book values appropriately reflected the fair values of Devine$$s underlying accounts except that a building with a $5-$year future life was undervalued by $$91,500$ and a fully amortized trademark with an estimated $10-$year remaining life had a $$82,000$ fair value. At the acquisition date, Devine reported common stock of $$100,000$ and a retained earnings balance of $$209,500.$ Following are the separate financial statements for the year ending December $31,2021$: $$Holtz Corporation$$Devine$,$ Inc.Sales$$(746,000)$$$(386,000)$Cost of goods sold$272,000193,000$Operating expenses$286,000108,000$Dividend income$(16,000)0$Net income$$(204,000)$$$(85,000)$Retained earnings, $1/1/21$$$(718,000)$$$(279,500)$Net income $($above$)(204,000)(85,000)$Dividends declared$60,00020,000$Retained earnings, $12/31/21$$$(862,000)$$$(344,500)$Current assets$$190,500$$$121,500$Investment in Devine, Inc.$520,0000$Buildings and equipment $($net$)824,000328,000$Trademarks$140,000215,000$Total assets$$1,674,500$$$664,500$Liabilities$$(492,500)$$$(220,000)$Common stock$(320,000)(100,000)$Retained earnings, $12/31/21($above$)(862,000)(344,500)$Total liabilities and equities$$(1,674,500)$$$(664,500)$ At year$-$end, there were no intra$-$entity receivables or payables. Prepare a worksheet to consolidate these two companies as of December $31,2021.$ Prepare a $2021$ consolidated income statement for Holtz and Devine. If instead the noncontrolling interest shares of Devine had traded for $$4\mathrm{.}83$ surrounding Holtz$$s acquisition date, what is the impact on goodwill?

The Holtz Corporation acquired $80$ percent of the $100,000$ outstanding voting shares of Devine, Inc., for $$6\mathrm{.}50$ per share on January $1,$

The remaining $20$ percent of Devine's shares also traded actively at $$6\mathrm{.}50$ 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 $$91,500$ and a fully amortized trademark with an estimated $10-$year

remaining life had a $$82,000$ fair value. At the acquisition date, Devine reported common stock of $$100,000$ and a retained earnings

balance of $$209,500.$

Following are the separate financial statements for the year ending December $31,2021$:

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.

c$.$ If instead the noncontrolling interest shares of Devine had traded for $$4\mathrm{.}83$ surrounding Holtz's acquisition date, what is the impact

on goodwill?

Prepare a worksheet to consolidate these two companies as of December $31,2021.($For accounts where multiple consolidation entries are require

combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into on

amount and enter this amount in the credit column of the worksheet. Input all amounts as positive values.$)$

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.

c$.$ If instead the noncontrolling interest shares of Devine had traded for $$4\mathrm{.}83$ surrounding Holtz's acquisition date, what is the impact

on goodwill?

Assessment Tool iFrame

Prepare a $2021$ consolidated income statement for Holtz and Devine. $($Enter all amounts as positive values.$)$

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.

c$.$ If instead the noncontrolling interest shares of Devine had traded for $$4\mathrm{.}83$ surrounding Holtz's acquisition date, what is the impact

on goodwill?

Complete this question by entering your answers in the tabs below.

Required C

If instead the noncontrolling interest shares of Devine had traded for $$4\mathrm{.}83$ surrounding Holtz's acquisition date, what is the

impact on goodwill?