Branson paid $539,500 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 $378,000 (common stock of $200,000 and retained earnings of $178,000), although various unrecorded royalty agreements (10-year remaining life) were assessed at a $135,000 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 $55,000 if Wolfpack's income exceeded $110,000 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 $38,500. On December 31, 2023, based on Wolfpack's earnings to date, Branson increased the value of the contingency to $44,000. During the subsequent two years, Wolfpack reported the following amounts for income and dividends: Year Net Income Dividends Declared 2023 $ 58,000 $ 10,000 2024 68,000 20,000 In keeping with the original acquisition agreement, on December 31, 2024, Branson paid the additional $55,000 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