On January 1, 2020, 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, 2020, 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 $285,000. Zeeland’s acquisition-date fair values for its current assets and liabilities were equal to their carrying amounts. Any remaining excess of Zeeland’s acquisition-date fair value over its book value was attributed to goodwill. The companies’ financial statements for the year ending December 31, 2021, follow: Holland ZeelandSales$(640,500) $(428,500)Cost of goods sold 325,000 200,000 Depreciation expense 80,000 34,000 Amortization expense 14,000 21,000 Other operating expenses 52,000 63,500 Equity in Zeeland earnings (42,300) 0 Separate company net income$(211,800) $(110,000) Retained earnings 1/1$(820,200) $(296,500)Net income (211,800) (110,000)Dividends declared 50,000 30,000 Retained earnings 12/31$(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 $488,000 Liabilities$(371,500) $(11,500)Common stock—Holland (320,000) 0 Common stock—Zeeland 0 (100,000)Retained earnings 12/31 (982,000) (376,500)Total liabilities and owners equity$(1,673,500) $(488,000) At year-end, there were no intra-entity receivables or payables. Prepare a worksheet to determine the amounts that should appear on Holland’s December 31, 2021, consolidated financial statements. Need help with the missing in image. AccountsSalesCost of goods soldDepreciation expenseAmortization expenseOther operating expensesEquity in Zeeland earningsSeparate company net incomeConsolidated net incomeNoncontrolling interest in CNIControlling interest net incomeRetained earnings 1/1Net incomeDividends declaredRetained earnings 12/31Current assetsInvestment in Zeeland, IncProperty and equipment (net)PatentsGoodwillTotal assetsLiabilitiesCommon stockNoncontrolling interestRetained earnings 12/31Total liabilities and equitiesConsolidation WorksheetFor Year Ending December 31, 2021HollandZeeland$ (640,500) $ (428,500)325,000200,00080,00034,00014,00021,00052,00063,500(42,300)0(211,800) $ (110,000)(820,200)$ (296,500)(211,800)(110,000)30,00050,00018,000(982,000)$ (376,500)125,000 $ 81,500562,500018,000580,500837,000259,00044,00011,000149,000147,500256,50028,50000140,000$ 1,673,500 $ 488,000(371,500)(11,500)(320,000)(100,000)100,000(982,000)(376,500)$ (1,673,500) $ (488,000) $ 640,300 $ 638,000$$$$Consolidation EntriesDebitCredit11,00028,50042,300NoncontrollingInterest28,20012,000298,800ConsolidatedTotals$$$$$$$$1,069,000525,000125,00063,500115,500240,00028,200211,800820,200211,80050,000982,000206,5001,129,000524,500140,0002,000,000383,000320,000315,000982,0002,000,000

Parent company record the acquisition as investment in the subsidiary company in its individual…

Answered: On January 1, 2020, Holland Corporation…

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On January 1, 2020, 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, 2020, 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, 2021, 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	$	(211,800	)	$	(110,000	)

Retained earnings 1/1	$	(820,200	)	$	(296,500	)
Net income		(211,800	)		(110,000	)
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	$	(371,500	)	$	(11,500	)
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.

Prepare a worksheet to determine the amounts that should appear on Holland’s December 31, 2021, consolidated financial statements. Need help with the missing in image.

Accounts
Sales
Cost of goods sold
Depreciation expense
Amortization expense
Other operating expenses
Equity in Zeeland earnings
Separate company net income
Consolidated net income
Noncontrolling interest in CNI
Controlling interest net income
Retained earnings 1/1
Net income
Dividends declared
Retained earnings 12/31
Current assets
Investment in Zeeland, Inc
Property and equipment (net)
Patents
Goodwill
Total assets
Liabilities
Common stock
Noncontrolling interest
Retained earnings 12/31
Total liabilities and equities
Consolidation Worksheet
For Year Ending December 31, 2021
Holland
Zeeland
$ (640,500) $ (428,500)
325,000
200,000
80,000
34,000
14,000
21,000
52,000
63,500
(42,300)
0
(211,800) $ (110,000)
(820,200)
$ (296,500)
(211,800)
(110,000)
30,000
50,000
18,000
(982,000)
$ (376,500)
125,000 $ 81,500
562,500
0
18,000
580,500
837,000
259,000
44,000
11,000
149,000
147,500
256,500
28,500
0
0
140,000
$ 1,673,500 $ 488,000
(371,500)
(11,500)
(320,000)
(100,000)
100,000
(982,000)
(376,500)
$ (1,673,500) $ (488,000) $ 640,300 $ 638,000
$
$
$
$
Consolidation Entries
Debit
Credit
11,000
28,500
42,300
Noncontrolling
Interest
28,200
12,000
298,800
Consolidated
Totals
$
$
$
$
$
$
$
$
1,069,000
525,000
125,000
63,500
115,500
240,000
28,200
211,800
820,200
211,800
50,000
982,000
206,500
1,129,000
524,500
140,000
2,000,000
383,000
320,000
315,000
982,000
2,000,000

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