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The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $7.30 per share on January 1, 2020. The remaining

The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $7.30 per share on January 1, 2020. The remaining 20 percent of Devines shares also traded actively at $7.30 per share before and after Holtzs acquisition. An appraisal made on that date determined that all book values appropriately reflected the fair values of Devines underlying accounts except that a building with a 5-year future life was undervalued by $64,500 and a fully amortized trademark with an estimated 10-year remaining life had a $84,000 fair value. At the acquisition date, Devine reported common stock of $100,000 and a retained earnings balance of $333,500.

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

Holtz Corporation Devine, Inc.
Sales $ (674,000 ) $ (340,250 )
Cost of goods sold 233,000 166,000
Operating expenses 275,000 83,250
Dividend income (16,000 ) 0
Net income $ (182,000 ) $ (91,000 )
Retained earnings, 1/1/21 $ (783,000 ) $ (403,500 )
Net income (above) (182,000 ) (91,000 )
Dividends declared 70,000 20,000
Retained earnings, 12/31/21 $ (895,000 ) $ (474,500 )
Current assets $ 301,000 $ 196,500
Investment in Devine, Inc. 584,000 0
Buildings and equipment (net) 825,000 423,000
Trademarks 115,000 181,000
Total assets $ 1,825,000 $ 800,500
Liabilities $ (610,000 ) $ (226,000 )
Common stock (320,000 ) (100,000 )
Retained earnings, 12/31/21 (above) (895,000 ) (474,500 )
Total liabilities and equities $ (1,825,000 ) $ (800,500 )

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.

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