Branson paid $569,900 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 $402,000 (common stock of $200,000 and retained earnings of $202,000), although various unrecorded royalty agreements (10-year remaining life) were assessed at a $139,000 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 $53,000 if Wolfpacks income exceeded $160,000 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 $37,100. On December 31, 2020, based on Wolfpacks earnings to date, Branson increased the value of the contingency to $42,400.

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

In keeping with the original acquisition agreement, on December 31, 2021, Branson paid the additional $53,000 performance fee to Wolfpacks previous owners.

(4) Prepare entry I to record the accrual of equity earnings.

(5) Prepare entry D to record the dividends declared.

Please help me solve what's incorrect. Thank you!!

Net Income 2020 $83, 600 2021 93,600 Dividends Declared $20,000 30,000 Answer is not complete. Complete this question by entering your answers in the tabs below. Required Required Required Required B D Prepare consolidation worksheet entries as of December 31, 2021, assuming that Branson has applied the initial value method. (If no entry is required for a transaction/event, select "No journal entry required in the first account field) Show less No Event Accounts Debat Credit Investment in Wolfpack 49.700 Retained earnings. Bramon 49.700 2 s Common stock - Wolpack 200,000 Retiedeaming - Wolfpack 265 600 Investment in Wolfpack 465.600 Royalty greements 125.00 Goodwd Investment in Wolfpack 66 000 191.100 4 No malety required X 5 1 Dividend income Dividends declared 30.000 30.000 5 E Royalty agreement 13.00 3 D SC 883 833 Amortization sapere