Question: O n January 1 , 2 0 2 3 , QuickPort Company acquired 9 0 percent o f the outstanding voting stock o f NetSpeed,

On January 1,2023, QuickPort Company acquired 90 percent of the outstanding voting stock of NetSpeed, Incorporated for $963,000in cash and stock options. At the acquisition date, NetSpeed had common stock of $970,000 and Retained Earnings of $74,000. The acquisition-date fair value of the 10 percent noncontrolling interest was $107,000. QuickPort attributed the $68,500 excess of NetSpeed's fair value over book value to a database with a five-year remaining life.

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