Especially attractive to Access IT was a research project underway at Net Connect that would enhance both the speed and quantity of client accessible data. Although not recorded in Net Connect's financial records, the fair value of the research project was considered to be $2,000,000 In contractual agreements with the sole owner of the remaining 60 percent of Net Connect, Access IT was granted (t) various decision- making rights over Net Connect's operating decisions and (2) special service purchase provisions at below-market rates. As a result of these contractual agreements. Access IT established itself as the primary beneficiary of Net Connect. Immediately after the purchase, Access IT and Net Connect presented the following balance sheets: Net Connect $ 45,000 Access IT $ 65,00 1.040,000 985.000 1,070,90 920.000 Cash Investment in Net Connect Capitalized software Computer equipment Communications equipment Patent Total assets Long-term debt Connon stock-Access IT Common stock.Net Connect Retained earnings Total liabilities and equity 160,000 60, eee 340,000 195,000 $ 300,000 $ (620,000) $4,000,000 $ (945,000) (2,700,000) (435,200) $(4,080,000) (45,000) (135,000 $ (800, eee) Each of the above amounts represents a fair value at January 1, 2018. The fair value of the 60 percent of Net Connect shares not owned by Access IT was $1,560,000 Prepare an acquisition-date consolidated worksheet for Access IT and its variable interest entity. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Amounts in the Debit and Credit columns should be entered as positive. Negative amounts for the NCI and Consolidated Totals columns should be entered with a minus sign.) Consolidated Balances ACCESS IT COMPANY AND NET CONNECT Consolidation Worksheet January 1, 2018 Consolidation Entries Access IT Net Connect Debit Credit 65,000 $ 45,000 1,040,000 985.000 160.000 1,070,000 60.000 920,000 340,000 Cash 195,000 Investment in NetConnect Capitalized software Computer equipment Communications equipment Research and development asset Patent Goodwill Total assets Long-term debt Common stock Access IT Common stock-NetConnect Retained earnings Noncontrolling interest Total abilities and equity 4,080.000 S (945,000) $ (2.700,000) 800,000 (620,000) , (435,000) (45,000) (135,000 $ (4,080.000) S (800,000) S 0 S 0