Problem $4-25($Algo$)($LO $4-3,4-5,4-7)$

On January $1,2023,$ Holland Corporation paid $$9$ per share to a group of Zeeland Corporation shareholders to acquire $60,000$ shares of Zeeland$$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 $$7\mathrm{.}50$ per share both before and after the acquisition by Holland. Zeeland$$s acquisition date balance sheet follows:

Current assets$ $15,900$Liabilities$ $240,500$Property and equipment $($net$)309,900$Common stock$100,000$Patents$214,700$Retained earnings$200,000$$ $540,500$$ $540,500$

On January $1,2023,$ Holland assessed the carrying amount of Zeeland$$s equipment $(5-$year remaining life$)$ to be undervalued by $$48,000.$ Holland also determined that Zeeland possessed unrecorded patents $(10-$year remaining life$)$ worth $$392,600.$ Zeeland$$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:

AccountHollandZeelandSales$ $(559,200)$$ $(447,500)$Cost of goods sold$283,600209,500$Depreciation expense$70,00032,100$Amortization expense$15,90019,100$Other operating expenses$59,60057,800$Equity in Zeeland earnings$(48,084)0$Separate company net income$ $(178,184)$$ $(129,000)$Retained earnings, $1/1$$ $(822,100)$$ $(347,800)$Net income$(178,184)(129,000)$Dividends declared$50,00030,000$Retained earnings, $12/31$$ $(950,284)$$ $(446,800)$Current assets$ $126,900$$ $100,500$Investment in Zeeland$629,4480$Property and equipment $($net$)856,000278,000$Patents$152,800170,500$Total assets$ $1,765,148$$ $549,000$Liabilities$ $(494,864)$$ $(2,200)$Common stock$$Holland$(320,000)0$Common stock$$Zeeland$0(100,000)$Retained earnings, $12/31(950,284)(446,800)$Total liabilities and owners' equity$ $(1,765,148)$$ $(549,000)$

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

Required:

a$1.$ Compute the amount of goodwill recognized in Holland's acquisition of Zeeland.

a$2.$ 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. worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Input all amounts as pos