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On January 1 , 2 0 2 3 , QuickPort Company acquired 9 0 percent of the outstanding voting stock of NetSpeed, Incorporated, for $
On January QuickPort Company acquired percent of the outstanding voting stock of NetSpeed, Incorporated, for $ in cash and stock options. At the acquisition date, NetSpeed had common stock of $ and Retained Earnings of $ The acquisitiondate fair value of the percent noncontrolling interest was $ QuickPort attributed the $ excess of NetSpeed's fair value over book value to a database with a fiveyear remaining life. Required:
a Compute the equity method balance in QuickPort's Investment in NetSpeed, Incorporated, account as of December
b Prepare the worksheet adjustments for the December consolidation of QuickPort and NetSpeed.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Compute the equity method balance in QuickPort's Investment in NetSpeed, Incorporated, account as of December
During the next two years, NetSpeed reported the following:
tableItemsNet Income,Dividends Declared$$
On July QuickPort sold communication equipment to NetSpeed for $ The equipment originally cost $ and had accumulated depreciation of $ and and estimated remaining life of three years at the date of the intraentity transfer.
Required:
a Compute the equity method balance in QuickPort's Investment in NetSpeed, Incorporated, account as of December
b Prepare the worksheet adjustments for the December consolidation of QuickPort and NetSpeed.
Complete this question by entering your answers in the tabs below.
Prepare the worksheet adjustments for the December consolidation of QuickPort and NetSpeed.
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field.
tableNoTransaction,Accounts,Debit,CreditoTAEquipment,Investment in NetSpeed,Accumulated depreciation,,SCommon stock NetSpeed,,Retained earningsNetSpeed,,Investment in NetSpeed,,Noncontrolling interest,,ADatabase,,Investment in NetSpeed,,Noncontrolling interest,,iEquity in earnings of NetSpeed,Investment in NetSpeed,,DInvestment in NetSpeed,,Dividends declared,,EAmortization expense,,Database,,EDAccumulated depreciation,Depreciation expense,,
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