$1$

On January $1,2023,$ QuickPort Company acquired $90$ percent of the outstanding voting stock of Netspeed, Incorporated for $\backslash (\backslash$$ $864,000\backslash )$ in cash and stock options. At the acquisition date, Netspeed had common stock of $\backslash (\backslash$$ $860,000\backslash )$ and Retained Earnings of $\backslash (\backslash$$ $52,000\backslash ).$ The acquisition$-$date fair value of the $10$ percent noncontrolling interest was $\backslash (\backslash$$ $96,000\backslash ).$ QuickPort attributed the $\backslash (\backslash$$ $63,000\backslash )$ excess of NetSpeed's fair value over book value to a database with a five$-$year remaining life.

$4$ During the next two years, Net$5$peed reported the following:

$9$

On July $1,2023,$ QuickPort sold communication equipment to Net$5$peed for $\backslash (\backslash$$ $45,600\backslash ).$ The equipment

$19$ originally cost $\backslash$$$51,600$ and had accumulated depreciation of $\backslash$$$9,360$ and an estimated remaining life of three years at the date of the intra$-$entity transfer.

$20$

$25$

$29$ a$.$ Compute the equity method balance in QuickPort's Investment in NetSpeed, Incorporated account as of December $31,2024.$

$30$ Note: Input all amounts as positive values.

$31$

$\backslash$begin$\{$tabular$\}\{$l$|$l$|$l$|\}$

$\backslash$hline $32$ & Investment Account: & $\backslash \backslash$

$33$ & Consideration paid $($fair value$)1/1/23$ & $\backslash \backslash$

$\backslash$hline $34$ & NetSpeed's reported net income for $2023$ & $\backslash \backslash$

$\backslash$hline $35$ & Database amortization & $\backslash \backslash$

$\backslash$hline $36$ & NetSpeed's adjusted net income & $\backslash \backslash$

$\backslash$hline $37$ & QuickPort's ownership percentage & $\backslash \backslash$

$\backslash$hline $38$ & QuickPort's share of NetSpeed's net income & $\backslash \backslash$

$\backslash$hline $39$ & Gain on equipment transfer deferral & $\backslash \backslash$

$\backslash$hline $40$ & Depreciation adjustment $(6$ months$)$ & $\backslash \backslash$

$\backslash$hline $41$ & Equity in earnings of NetSpeed, $2023$ & $\backslash \backslash$

$\backslash$hline $42$ & QuickPort's share of NetSpeed's dividends & $\backslash \backslash$

$\backslash$hline $43$ & Balance $12/31/2023$ & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

$44$

$45$ A$1$

fy Accessibility tab summary: Information about QuickPort Company is provided in rows $2$ to $24.$ Statement $1$ for student pre

Dalarice $\backslash (1\backslash$angle $/$ J $1/\backslash$angle U $\backslash$angle $4\backslash )$

B

C

D

E

$54$

$55$

b$.$ Prepare the worksheet adjustments for the December $31,2024$ consolidation of QuickPort and NetSpeed.

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline $56$ & & & & $\backslash \backslash$

$\backslash$hline $57$ & & Account Title & Debit & Credit $\backslash \backslash$

$\backslash$hline $58$ & $*$TA & $7$ & $-$ & V $\backslash \backslash$

$\backslash$hline $59$ & & $\backslash ($ r $\backslash )$ & F & r $\backslash \backslash$

$\backslash$hline $60$ & & $\backslash (\backslash$checkmark $\backslash )$ & F & $\backslash (\backslash$checkmark $\backslash )\backslash \backslash$

$\backslash$hline $61$ & S & $\backslash (\backslash$checkmark $\backslash )$ & $-$ & $\backslash (\backslash$checkmark $\backslash )\backslash \backslash$

$\backslash$hline $62$ & & $7$ & F & r $\backslash \backslash$

$\backslash$hline $63$ & & $7$ & $-$ & r $\backslash \backslash$

$\backslash$hline $64$ & & $7$ & $7$ & r $\backslash \backslash$

$\backslash$hline $65$ & A & $\backslash (\backslash$checkmark $\backslash )$ & r & $\backslash (\backslash$checkmark $\backslash )\backslash \backslash$

$\backslash$hline $66$ & & $\backslash (\backslash$checkmark $\backslash )$ & F & $\backslash (\backslash$checkmark $\backslash )\backslash \backslash$

$\backslash$hline $67$ & & V & & $-\backslash \backslash$

$\backslash$hline $68$ & I & $\backslash (\backslash$checkmark $\backslash )$ & F & $\backslash (\backslash$checkmark $\backslash )\backslash \backslash$

$\backslash$hline $69$ & & $\backslash (\backslash$checkmark $\backslash )$ & $-$ & $\backslash ($

abla $\backslash )\backslash \backslash$

$\backslash$hline $70$ & D & $7$ & $-$ & $7\backslash \backslash$

$\backslash$hline $71$ & & V & $-$ & $\backslash (\backslash$checkmark $\backslash )\backslash \backslash$

$\backslash$hline $72$ & E & $\backslash (\backslash$checkmark $\backslash )$ & F & F $\backslash \backslash$

$\backslash$hline $73$ & & $7$ & $-$ & $\backslash (\backslash$checkmark $\backslash )\backslash \backslash$

$\backslash$hline $74$ & ED & $7$ & F & F $\backslash \backslash$

$\backslash$hline $75$ & & $\backslash (\backslash$checkmark $\backslash )$ & F & $\backslash (\backslash$checkmark $\backslash )\backslash \backslash$

$\backslash$hline $76$ & & & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$