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On January 1 2017 Holland assessed the carrying amount of Zeeland’s equipment 5-year remaining life to be undervalued by $55000 Holland also determined that Zeeland possessed unrecorded patents

On January 1, 2017, 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, 2018, follow:

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

a. Compute the amount of goodwill recognized in Holland’s acquisition of Zeeland and the allocation of goodwill to the controlling and non-controlling interest.

Apr 26 2020 View more View Less

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