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Branson paid $537100 cash for all of the outstanding common stock of Wolfpack, Inc., on January 1, 2020. On that date, the subsidiary had a

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Branson paid $537100 cash for all of the outstanding common stock of Wolfpack, Inc., on January 1, 2020. On that date, the subsidiary had a book value of $353,000 (common stock of $200,000 and retained earnings of $153,000), although various unrecorded royalty agreements (10-year remaining life) were assessed at a $153,000 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 $57,000 if Wolfpack's income exceeded $120,000 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 $39,900. On December 31, 2020, based on Wolfpack's earnings to dote, Branson increased the value of the contingency to $45,600 During the subsequent two years, Wolfpack reported the following amounts for income and dividends: Net Income Dividends Declared $ 25,000 76,400 35,000 2020 2021 $ 66,400 In keeping with the original acquisition agreement, on December 31, 2021, Branson paid the additional $57,000 performance fee to Wolfpack's previous owners. Prepare each of the following: a. Branson's entry to record the acquisition of the shares of its Wolfpack subsidiary b. Branson's entries at the end of 2020 and 2021 to adjust its contingent performance obligation for changes in fair value and the December 31, 2021. payment. c. Prepare consolidation worksheet entries as of December 31, 2021, assuming that Branson has applied the equity method, d. Prepare consolidation worksheet entries as of December 31, 2021, assuming that Bronson has applied the initial value method Complete tis question by entering your answers in the tabs below. Required A Required B Required Required D Branson's entry to record the acquisition of the shares of the Wil Required A Required B Required C Required D Branson's entry to record the acquisition of the shares of Its Wolfpack subsidiary. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries Record the acquisition of the shares of its subsidiary Wolfpack. Note: Enter debits before credits Transaction General Journal Debit Credit 1 Record entry Clear entry view general Journal Required A Required B Required C Required D Branson's entries at the end of 2020 and 2021 to adjust its contingent performance obligation for changes in fair value and the December 31, 2021, payment. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) view transaction list Consolidation Worksheet Entries

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