Question: Please help solve a-c, two screenshots total. Thank you. Retained earnings, 1/1 $ (820,200) $(296,500) Net income (21 1,800) (1 10,000) Dividends declared 50,000 30,000
Please help solve a-c, two screenshots total. Thank you.
Retained earnings, 1/1 $ (820,200) $(296,500) Net income (21 1,800) (1 10,000) Dividends declared 50,000 30,000 Retained earnings, 12/31 $ (982,000) $(376,500) Current assets $ 125,000 $ 81,500 Investment in Zeeland 562,500 -0- Property and equipment (net) 837,000 259,000 Patents 149,000 147,500 Total assets $ 1,673,500 $ 488,000 Liabilities $ (37 1,500) $ (1 1,500) Common stock-Holland (320,000) -0- Common stock-Zeeland -0- (100,000) Retained earnings, 12/31 (982,000) (376,500) Total liabilities and owners' equity $(1,673,500) $(488,000) At year-end, there were no intra-entity receivables or payables. Page 203 a. Compute the amount of goodwill recognized in Holland's acquisition of Zeeland and 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.25. On January 1, 2023, Holland Corporation paid $8 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 $6.50 per share both before and after the acquisition by Holland. Zeeland's acquisition date balance sheet follows: Current assets $ 14,000 Liabilities $212,000 Property and equipment (net) 268,000 Common stock 100,000 Patents 190,000 Retained earnings 160,000 $472,000 $472,000 On January 1, 2023, Holland assessed the carrying amount of Zeeland's equipment (5-year remaining life ) to be undervalued by $55,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $285,000. 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: Holland Zeeland Sales $ (640,500) $(428,500) Cost of goods sold 325,000 200,000 Depreciation expense 80,000 34,000 Amortization expense 14,000 21,000 Other operating expenses 52,000 63,500 Equity in Zeeland earnings (42,300) -0- Separate company net income $ (21 1,800) $(1 10,000)
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