Branson paid $$546,200$ cash for all of the outstanding common stock of Wolfpack, Incorporated, on January $1,2023.$ On that date, the subsidiary had a book value of $$420,000($common stock of $$200,000$ and retained earnings of $$220,000),$ although various unrecorded royalty agreements $(10-$year remaining life$)$ were assessed at a $$108,000$ fair value. Any remaining excess fair value was considered goodwill.

In negotiating the acquisition price, Branson also promised to pay Wolfpack$$s former owners an additional $$64,000$ if Wolfpack$$s income exceeded $$140,000$ total over the first two years after the acquisition. At the acquisition date, Branson estimated the probability$-$adjusted present value of this contingent consideration at $$44,800.$ On December $31,2023,$ based on Wolfpack$$s earnings to date, Branson increased the value of the contingency to $$51,200.$

During the subsequent two years, Wolfpack reported the following amounts for income and dividends:

Year Net Income Dividends Declared

$2023$ $ $77,300$ $ $20,000$

$202487,30030,000$

In keeping with the original acquisition agreement, on December $31,2024,$ Branson paid the additional $$64,000$ performance fee to Wolfpack$$s previous owners.

Required:

Prepare each of the following:

Branson$$s entry to record the acquisition of the shares of its Wolfpack subsidiary.

Branson$$s entries at the end of $2023$ and $2024$ to adjust its contingent performance obligation for changes in fair value and the December $31,2024,$ payment.

Prepare consolidation worksheet entries as of December $31,2024,$ assuming that Branson has applied the equity method.