Amount

a1 Goodwill $ 70,900
Contorolling interest NCI
a2 Goodwill $ 66,540 $ 4,360
Amount
b Initial value $ 480,000
Change in Zeeland's RE $ 162,300 (450500-180000)*0.6
Excess amortization $ (54,732) 45610*2*0.6
Investment in Zeeland $ 587,568

Consideration transferred by Holland 480000

8*60000
Fair value of NCI 280000
7*40000
Total fair value 760000
Zeelands book value 280000
100000+180000
Excess acquisition over FV 480000
Allocated to Life Amortization
Equipment 47000 5 9400
Patent 362100 10 36210
Goodwill 70900 45610

Holland NCI
Acquisition date fair value 480000 280000
Share of FV assets 413460 275640
Goodwill allocation 66540 4360

Current assets 16000

Property & equipment 337000
290000+47000
Patents 578100
216000+362100
Liabilities -242000
Total fair value of Net identifiatble assets 689100

Zeelands reported net income $ 130,000

Excess fair value amortizations -45610
Adjusted net income $ 84,390
Hollands ownership share 60%
Equity in Zeeland's earnings 50634
NCI share $ 33,756
 Consolidation worksheet
Consolidation entries
Holland Zeeland Debit Credit NCI Consolidated totals
Sales $ (547,500.00) $ (448,500.00) $ (996,000.00)
Cost of goods sold $ 277,700.00 $ 210,000.00 $ 487,700.00
Depreciation expense $ 68,500.00 $ 32,000.00 $ 9,400.00 $ 109,900.00
Amortization expense $ 16,000.00 $ 19,000.00 $ 36,210.00 $ 71,210.00
Other operating expenses $ 60,000.00 $ 57,500.00 $ 117,500.00
Equity in Zeeland earnings $ (50,634.00) $ 50,634.00 $ -
Separate company net income $ (175,934.00) $ (130,000.00)
Consolidated net income $ (209,690.00)
Non controlling interest $ (33,756.00) $ 33,756.00
controlling interest net income $ (175,934.00)
Retained earnings 1/1 $ (822,200.00) $ (350,500.00) $ 350,500.00 $ (822,200.00)
Net income $ (175,934.00) $ (130,000.00) $ (175,934.00)
Dividends declared $ 50,000.00 $ 30,000.00 $ 18,000.00 $ 12,000.00 $ 50,000.00
Retained earnings 12/31 $ (948,134.00) $ (450,500.00) $ (948,134.00)

Current assets $ 127,000 $ 101,500 $ 228,500.00

Investment in Xeeland $ 587,568 $ 18,000.00 $ 605,568.00 $ -
Property and equipment (net) $ 857,000 $ 279,000 $ 37,600.00 $ 9,400.00 $ 1,164,200.00
Patents $ 153,000 $ 171,500 $ 325,890.00 $ 36,210.00 $ 614,180.00
Goodwill $ 70,900.00 $ 70,900.00
Total assets $ 1,724,568 $ 552,000 $ 2,077,780.00

Liabilities $ (456,434) $ (1,500) $ (457,934.00)

Common stock-Holland $ (320,000) $ (100,000) $ 100,000.00 $ (320,000.00)
Non controlling interest $ 329,956.00 $ 329,956.00 $ (351,712.00)
Retained earnings 12/31 $ (948,134) $ (450,500) $ (948,134.00)
Total liabilitiwes and owners equity $ (1,724,568) $ (552,000) $ 999,134.00 $ 999,134.00 $ (2,077,780.00)

Working
Holland NCI
Entry A $ 37,600.00
Entry A $ 325,890.00
Goodwill $ 66,540 $ 4,360
Total $ 363,490.00 $ 218,094.00 $ 145,396.00
Entry S $ 350,500.00
Entry S $ 100,000.00
Total $ 450,500.00 $ 270,300.00 $ 180,200.00
Entry I $ 50,634.00
Combined total $ 605,568.00 $ 329,956.00