Problem $5-18($Algo$)($LO $5-7)$

On January $1,2023,$ QuickPort Company acquired $90$ percent of the outstanding voting stock of NetSpeed, Incorporated, for $$1,026,000$ in cash and stock options. At the acquisition date, NetSpeed had common stock of $$1,080,000$ and Retained Earnings of $$54,000.$ The acquisition$-$date fair value of the $10$ percent noncontrolling interest was $$114,000.$ QuickPort attributed the $$6,000$ excess of NetSpeed's fair value over book value to a database with a five$-$year remaining life.

During the next two years, NetSpeed reported the following:

$2023$: net income $=$ $$8400$ ; dividends declared$=$$$1200$

$2024$: net income $=$ $$12000$ ; dividends declared $=$ $$1200$

on july $1,2023$ QuickPorr sold communciation equiptment to NetSpeed for $$9000.$ The equiptment had accumulated depreciation of $$11,800$ and an estimated remaining life of $3$ years at the date of the intra$-$entity transfer.

A$.$ Compute the equity method balance in QuickPort investment in NetSpeed Incorporated account as of December $31,2024$

B$.$ Preprare the worksheet adjustment for the Dec $31,2024$ consolidation of QuickPort and NetSpeed.