On January 1, 2024, Platform Company exchanged $1,000,000 for 40 percent of the outstanding voting stock...

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On January 1, 2024, Platform Company exchanged $1,000,000 for 40 percent of the outstanding voting stock of Vector Company. Especially attractive to Platform was a research project underway at Vector that would enhance both the speed and quantity of client- accessible data. Although not recorded In Vector's financial records, the fair value of the research project was considered to be $1,960,000. Also Vector possessed unpatented technology with a fair value of $376,000. In contractual agreements with the sole owner of the remaining 60 percent of Vector, Platform was granted (1) various decision-making rights over Vector's operating decisions and (2) special service purchase provisions at below-market rates. As a result of these contractual agreements, Platform established itself as the primary beneficiary of Vector. Immediately after the purchase, Platform and Vector presented the following balance sheets: (Note: Parentheses Indicate credit balances.) Accounts Cash Investment in Vector Capitalized software Computer equipment Communications equipment Patent Total assets Long-term debt Common stock-Platform Common stock-Vector Retained earnings Total liabilities and equity Vector Platform $ 61,000 1,000,000 $ 41,000 981,000 1,066,000 916,000 $ 4,024,000 $ (941,000) (2,660,000) (423,000) $ (4,024,000) 156,000 56,000 336,000 191,000 $ 780,000 $ (616,000) (41,000) (123,000) $ (780,000) Each of the above amounts represents a fair value at January 1, 2024. The fair value of the 60 percent of Vector shares not owned by Platform was estimated at $1,500,000. Required: Prepare an acquisition-date consolidation worksheet for Platform and its variable Interest entitv. On January 1, 2024, Platform Company exchanged $1,000,000 for 40 percent of the outstanding voting stock of Vector Company. Especially attractive to Platform was a research project underway at Vector that would enhance both the speed and quantity of client- accessible data. Although not recorded In Vector's financial records, the fair value of the research project was considered to be $1,960,000. Also Vector possessed unpatented technology with a fair value of $376,000. In contractual agreements with the sole owner of the remaining 60 percent of Vector, Platform was granted (1) various decision-making rights over Vector's operating decisions and (2) special service purchase provisions at below-market rates. As a result of these contractual agreements, Platform established itself as the primary beneficiary of Vector. Immediately after the purchase, Platform and Vector presented the following balance sheets: (Note: Parentheses Indicate credit balances.) Accounts Cash Investment in Vector Capitalized software Computer equipment Communications equipment Patent Total assets Long-term debt Common stock-Platform Common stock-Vector Retained earnings Total liabilities and equity Vector Platform $ 61,000 1,000,000 $ 41,000 981,000 1,066,000 916,000 $ 4,024,000 $ (941,000) (2,660,000) (423,000) $ (4,024,000) 156,000 56,000 336,000 191,000 $ 780,000 $ (616,000) (41,000) (123,000) $ (780,000) Each of the above amounts represents a fair value at January 1, 2024. The fair value of the 60 percent of Vector shares not owned by Platform was estimated at $1,500,000. Required: Prepare an acquisition-date consolidation worksheet for Platform and its variable Interest entitv.

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