PLEASE COMPLETE REQ A & B$,$ SEE INFO BELOW: 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?

On January $1,2020,$ Paloma Corporation exchanged $$1,710,000$ cash for $90$ percent of the outstanding voting stock of San Marco

Company. The consideration transferred by Paloma provided a reasonable basis for assessing the total January $1,2020,$ fair value of

San Marco Company. At the acquisition date, San Marco reported the following owners' equity amounts in its balance sheet:

In determining its acquisition offer, Paloma noted that the values for San Marco's recorded assets and liabilities approximated their fair

values. Paloma also observed that San Marco had developed internally a customer base with an assessed fair value of $$800,000$ that

was not reflected on San Marco's books. Paloma expected both cost and revenue synergies from the combination.

At the acquisition date, Paloma prepared the following fair$-$value allocation schedule:

At December $31,2021,$ the two companies report the following balances:

At year$-$end, there were no intra$-$entity receivables or payables.

a$.$ Determine the consolidated balances for this business combination as of December $31,2021.$

b$.$ If instead the noncontrolling interest's acquisition$-$date fair value is assessed at $$167,500,$ what changes would be evident in the

consolidated statements?

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

Required B

Determine the consolidated balances for this business combination as of December $31,2021.($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.$)$

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At year$-$end, there were no intra$-$entity receivables or payables.

a$.$ Assessment Tool iFrame d balances for this business combination as of December $31,2021.$

b$.$ If instead the noncontrolling interest's acquisition$-$date fair value is assessed at $$167,500,$ what changes would be evident in the

consolidated statements?

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

Required A

Required B

If instead the noncontrolling interest's acquisition$-$date fair value is assessed at $$167,500,$ what changes would be evident in

the consolidated statements?