Vishnu January 1, 2023. The remaining 20 percent of Devine's shares also traded actively at $7.60 per share before and after Holtz'sacquisition. An appraisal made on that date determined that all book values appropriately reflected the fair values of Devine'sunderlying accounts except that a building with a 5-year future life was undervalued by $72,500 and a fully amortized trademark withan estimated 10-year remaining life had a $77,000 fair value. At the acquisition date, Devine reported common stock of $100,000 and aretained earnings balance of $348,500.Following are the separate financial statements for the year ending December 31, 2024:HoltzCorporation$ (614,000)216,000251,000(16,000)$ (163,000)AccountsSalesCost of goods soldOperating expensesDividend incomeNet incomeRetained earnings, 1/1/24Net income (above)Dividends declaredRetained earnings, 12/31/24Current assetsInvestment in Devine, IncorporatedBuildings and equipment (net)TrademarksTotal assetsLiabilities$ (712,000)(163,000)80,000$ (795,000)$ 322,000608,000710,000189,000$ 1,829,000)$ (714,000)(320,000)(795,000)$ (1,829,000)Devine,Incorporated$ (408,250)174,000122,2500$ (112,000)$ (418,500)(112,000)20,000$ (510,500)$ 305,5000436,000142,000$ 883,500$ (273,000)(100,000)(510,500)$ (883,500)Common stockRetained earnings, 12/31/24 (above)Total liabilities and equitiesAt year-end, there were no intra-entity receivables or payables.Required:a. Prepare a worksheet to consolidate these two companies as of December 31, 2024.b. Prepare a 2024 consolidated income statement for Holtz and Devine.c. If instead the noncontrolling interest shares of Devine had traded for $5.98 surrounding Holtz's acquisition date, what is the impacton goodwill?

The consolation is the accounting process in which the financial results of the parent company and…

Required: a. Prepare a worksheet to consolidate these two companies as of December 31, 2024. b. Prepare a 2024 consolidated income statement for Holtz and Devine. c. If instead the noncontrolling interest shares of Devine had traded for $5.98 surrounding Holtz's acquisition date, what is the impact on goodwill?