On January $1,2023,$ QuickPort Company acquired $90$ percent of the outstanding voting stock of NetSpeed, Incorporated, for $$837,000$ in cash and stock options. At the acquisition date, NetSpeed had common stock of $$840,000$ and Retained Earnings of $$42,000.$ The acquisition$-$date fair value of the $10$ percent noncontrolling interest was $$93,000.$ QuickPort attributed the $$48,000$ excess of NetSpeed's fair value over book value to a database with a five$-$year remaining life. Required:

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

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

Complete this question by entering your answers in the tabs below.

Required A

Required B

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

During the next two years, NetSpeed reported the following:

$\backslash$table$[[$Items$,$Net Income,Dividends Declared$],[2023,$$$64,000,$$$6,400],[2024,92,000,6,400]]$

On July $1,2023,$ QuickPort sold communication equipment to NetSpeed for $$33,600.$ The equipment originally cost $$38,400$ and had accumulated depreciation of $$7,200$ and and estimated remaining life of three years at the date of the intra$-$entity transfer.

Required:

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

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

Complete this question by entering your answers in the tabs below.

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

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

$\backslash$table$[[,$No$,$Transaction,Accounts,Debit,Credit$],[$o$,1,*$TA$,$Equipment,$4,800,],[,,,$Investment in NetSpeed,$2,000,],[,,,$Accumulated depreciation,,$6,800],[>,2,$S$,$Common stock $-$ NetSpeed,,$],[,,,$Retained earnings$-$NetSpeed,,$],[,,,$Investment in NetSpeed,,$],[,,,$Noncontrolling interest,,$],[-,3,$A$,$Database,,$],[,,,$Investment in NetSpeed,,$],[,,,$Noncontrolling interest,,$],[$i$,4,1,$Equity in earnings of NetSpeed,$74,960,],[,,,$Investment in NetSpeed,,$74,960],[>,5,$D$,$Investment in NetSpeed,,$],[,,,$Dividends declared,,$],[>,6,$E$,$Amortization expense,,$],[,,,$Database,,$],[>,7,$ED$,$Accumulated depreciation,$800,],[,,,$Depreciation expense,,$800]]$