0 E i eztomheducationcom 1:,\" DeVry Student Portal ' ' Week 3: Homework Week 3: Homework 0 Saved 4 13 poms ii References Branson paid $543,800 cash for all ofthe outstanding common stock of Wolfpack, Inc., on January 1, 2020. On that date, the subsidiary had a book value of $401,000 (common stock of $200,000 and retained earnings of $201,000), although various unrecorded royalty agreements ('loeyear remaining life) were assessed at a $124,000 fair value. Any remaining excess fair value was considered goodwill. In negotiating the acquisition price, Branson also promised to pay Wolfpack's former owners an additional $56,000 if Wolfpack's income exceeded $130,000 total over the first two years after the acquisition. At the acquisition date, Branson estimated the probability-adjusted present value ofthis contingent consideration at $39,200. On December 31, 2020, based on Wolfpack's earnings to date, Branson increased the value ofthe contingency to $44,800, During the subsequent two years, Wolfpack reported the following amounts for income and dividends: Net Income Dividends Declared 2020 $ 72,400 $ 25,000 2021 82,400 35,000 , In keeping with the original acquisition agreement, on December 31, 2021, Branson paid the additional $56,000 performance fee to Wolfpack's previous owners, Prepare each of the following: a. Branson's entry to record the acquisition ofthe shares of its Wolfpack subsidiary. b. Branson's entries at the end of2020 and 2021 to adjust its contingent performance obligation for changes in fair value and the December 31, 2021, payment. c. Prepare consolidation worksheet entries as of December 31, 2021, assuming that Branson has applied the equity method. d. Prepare consolidation worksheet entries as of December 31, 2021, assuming that Branson has applied the initial value method. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Prepare consolidation worksheet entries as of December 31, 2021, assuming that Branson has applied the equity method. (If no entry is required for a transaction/event, select "No journal entry required" in the rst account field.) Consolidation Worksheet Entries ( Prev 4 of 4 Next In Question a - Week 3. Homework - Connect Help Save & Exlt Submit