Branson paid $566,700 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 $411,000 (common stock of $200,000 and retained earnings of $211,000), although various unrecorded royalty agreements (10-year remaining life) were assessed at a $136,000 fair value. Any remaining excess fair value was considered goodwill.

In negotiating the acquisition price, Branson also promised to pay Wolfpacks former owners an additional $59,000 if Wolfpacks income exceeded $130,000 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 $41,300. On December 31, 2023, based on Wolfpacks earnings to date, Branson increased the value of the contingency to $47,200.

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

Year	Net Income	Dividends Declared
2023	$ 71,000	$ 20,000
2024	81,000	30,000

In keeping with the original acquisition agreement, on December 31, 2024, Branson paid the additional $59,000 performance fee to Wolfpacks previous owners.

Required:

Prepare each of the following:

Bransons entry to record the acquisition of the shares of its Wolfpack subsidiary.

Bransons 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.

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

WARNING THIS QUESTION HAS MULTIPLE PARTS, please show work when possible. Thank you =)

PART B1-B3

PART C1-C6

PART D1-D6

Prepare consolidation worksheet entries as of December 31,2024 , assuming that Branson has applie Note: If no entry is required for a transaction/event, select "No journal entry required" in the first acc Consolidation Worksheet Entries Prepare Entry E to record excess fair-value amortization expenses. Note: Enter debits before credits. 3ranson'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. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Consolidation Worksheet Entries Record the adjustment of contingent performance obligation for changes in fair value. Note: Enter debits before credits. Prepare consolidation worksheet entries as of December 31,2024 , assuming that Branson has applied t Note: If no entry is required for a transaction/event, select "No journal entry required" in the first accou Consolidation Worksheet Entries Prepare Entry D to record the dividends declared on December 31, 2024. Note: Enter debits before credits. Prepare consolidation worksheet entries as of December 31,2024 , assuming that Branson has applied Note: If no entry is required for a transaction/event, select "No journal entry required" in the first acco Consolidation Worksheet Entries Prepare Entry C* to convert parent's beginning retained earnings to full accrual basis. Note: Enter debits before credits. Prepare consolidation worksheet entries as of December 31,2024 , assuming that Branson has appliec Note: If no entry is required for a transaction/event, select "No journal entry required" in the first acc Consolidation Worksheet Entries Prepare Entry E to record excess fair-value amortization expenses on December 31, 2024. Note: Enter debits before credits. Prepare consolidation worksheet entries as of December 31,2024 , assuming that Branson has applied Note: If no entry is required for a transaction/event, select "No journal entry required" in the first acco Consolidation Worksheet Entries Prepare Entry S to record the elimination of common stock and retained earnings. Note: Enter debits before credits. Prepare consolidation worksheet entries as of December 31,2024 , assuming that Branson has applied th Note: If no entry is required for a transaction/event, select "No journal entry required" in the first accour Consolidation Worksheet Entries Prepare Entry I to record the accrual of equity earnings on December 31, 2024. Note: Enter debits before credits. 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. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Consolidation Worksheet Entries Record the adjustment of contingent performance obligation for changes in fair value. Note: Enter debits before credits. Prepare consolidation worksheet entries as of December 31, 2024, assuming that Branson has applie Note: If no entry is required for a transaction/event, select "No journal entry required" in the first ac Consolidation Worksheet Entries Prepare Entry C to convert parent's beginning retained earnings to full accrual basis on December 31, 2024. Note: Enter debits before credits. Branson's entry to record the acquisition of the shares of its Wolfpack subsidiary. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Consolidation Worksheet Entries Record the acquisition of the shares of its subsidiary Wolfpack. Note: Enter debits before credits. 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. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Consolidation Worksheet Entries Record the payment of the contingent performance obligation fee. Note: Enter debits before credits. Prepare consolidation worksheet entries as of December 31,2024 , assuming that Branson has applied Note: If no entry is required for a transaction/event, select "No journal entry required" in the first acco Consolidation Worksheet Entries Prepare Entry A to record the acquisition-date excess fair values over book values, unamortized balances as of beginning of year. Note: Enter debits before credits. Prepare consolidation worksheet entries as of December 31,2024 , assuming that Branson has applied the Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account Consolidation Worksheet Entries Prepare Entry A to record the acquisition-date excess fair values over book values, unamortized balances as of beginning of year on December 31, 2024. Note: Enter debits before credits. Prepare consolidation worksheet entries as of December 31,2024 , assuming that Branson has applied t Note: If no entry is required for a transaction/event, select "No journal entry required" in the first accou Consolidation Worksheet Entries Prepare Entry S to record the elimination of common stock and retained earnings on December 31, 2024. Note: Enter debits before credits. Prepare consolidation worksheet entries as of December 31,2024 , assuming that Branson has applie Note: If no entry is required for a transaction/event, select "No journal entry required" in the first acc Consolidation Worksheet Entries Prepare Entry D to record the dividends declared. Note: Enter debits before credits. Prepare consolidation worksheet entries as of December 31,2024 , assuming that Branson has applied th Note: If no entry is required for a transaction/event, select "No journal entry required" in the first accoun Consolidation Worksheet Entries Prepare Entry I to record the accrual of equity earnings. Note: Enter debits before credits