On January 1, 2010, Hi-Speed.com acquired 100 percent of the common stock of Wi-Free Co. for cash of $730,000. The consideration transferred was allocated among Wi-Frees net assets as follows: Wi-Free fair value (cash paid by Hi-Speed) $730,000 Book value of Wi-Free: Common stock and APIC $130,000 Retained earnings 370,000 500,000 Excess fair value over book value to $230,000 In-process R&D 75,000 Computer software (overvalued) (30,000) Internet domain name 120,000 165,000 Goodwill $ 65,000 At the acquisition date, the computer software had a 4-year remaining life, and the Internet domain name was estimated to have a 10-year life. By the end of 2010, it became clear that the acquired inprocess research and development would yield no economic benefits and Hi-Speed.com recognized an impairment loss. At December 31, 2011, Wi-Frees accounts payable include a $30,000 amount owed to Hi-Speed. The December 31, 2011, trial balances for the parent and subsidiary follow: Hi-Speed.com Wi-Free Co. Revenues $(1,100,000) $(325,000) Cost of goods sold 625,000 122,000 Depreciation expense 140,000 12,000 Amortization expense 50,000 11,000 Equity in subsidiary earnings (175,500) 0 Net income $ (460,500) $(180,000) Retained earnings 1/1/11 $(1,552,500) $(450,000) Net income (460,500) (180,000) Dividends paid 250,000 50,000 Retained earnings 12/31/11 $(1,763,000) $(580,000) Current assets $ 1,034,000 $ 345,000 Investment in Wi-Free 856,000 0 Equipment (net) 713,000 305,000 Computer software 650,000 130,000 Internet domain name 0 100,000 Goodwill 0 0 Total assets $ 3,253,000 $ 880,000 Liabilities $ (870,000) $(170,000) Common stock (500,000) (110,000) Additional paid-in capital (120,000) (20,000) Retained earnings 12/31/11 (1,763,000) (580,000) Total liabilities and equity $(3,253,000) $(880,000) Required a. Using Excel, prepare calculations showing how Hi-Speed derived the $856,000 amount for its investment in Wi-Free. b. Using Excel, compute consolidated balances for Hi-Speed and Wi-Free. Either use a worksheet approach or compute the balances directly