On December 31, 2020, Petra Company invests $25,000 in Valery, a variable interest entity. In contractual agreements completed on that date, Petra established itself as the primary beneficiary of Valery. Previously, Petra had no equity interest in Valery. Immediately after Petras investment, Valery presents the following balance sheet:

Cash	$	25,000	Long-term debt	$	115,000
Marketing software		145,000	Noncontrolling interest		75,000
Computer equipment		45,000	Petra equity interest		25,000
Total assets	$	215,000	Total liabilities and equity	$	215,000

Each of the amounts represents an assessed fair value at December 31, 2020, except for the marketing software.

The December 31 business fair value of Valery is assessed at $100,000.

1. If the carrying amount of the marketing software was undervalued by $30,000, what amounts for Valery would appear in Petras December 31, 2020, consolidated financial statements?

2. If the carrying amount of the marketing software was overvalued by $30,000, what amounts for Valery would appear in Petras December 31, 2020, consolidated financial statements?

Each of the above amounts represents a fair value at January 1, 2021. The fair value of the 60 percent of Net Connect shares not owned by Access IT was estimated at $1,455,000. Prepare an acquisition-date consolidation 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. Input all amounts as positive values.) Consolidated Balances NCI ACCESS IT COMPANY AND NET CONNECT Consolidation Worksheet At January 1, 2021 Consolidation Entries Access IT Net Connect Debit Credit $ 58,000 $ 38,000 970,000 978,000 153,000 1,063,000 53,000 913,000 333,000 Cash Investment in Net Connect Capitalized software Computer equipment Communications equipment Research and development asset Patent 188,000 Goodwill $ $ Total assets Long-term debt 3,982,000 $ 765,000 (938,000) $ (613,000) $ Consolidated Balances NCI Cash Consolidation Worksheet At January 1, 2021 Consolidation Entries Access IT Net Connect Debit Credit $ 58,000 $ 38,000 970,000 978,000 153,000 1,063,000 53,000 913,000 333,000 188,000 Investment in Net Connect Capitalized software Computer equipment Communications equipment Research and development asset Patent Goodwill Total assets Long-term debt Common stock Access IT Common stock-Net Connect Retained earnings Noncontrolling interest Total liabilities and equity $ $ 3,982,000 $ 765,000 $ (938,000) $ (613,000) (2.630,000) (38,000) (414,000) (114,000) $ (3,982,000) (765,000) $ 0 $ 0 $