On January 1, 2014, Access IT Company exchanged $860,000 for 40 percent of the outstanding voting stock of Net Connect. Especially attractive to Access IT was a research project underway at Net Connect that would enhance both the speed and quantity of clientaccessible data. Although not recorded in Net Connects financial records, the fair value of the research project was considered to be $1,820,000.

In contractual agreements with the sole owner of the remaining 60 percent of Net Connect, Access IT was granted (1) various decision-making rights over Net Connects 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:

	Access IT			Net Connect
Cash	$	47,000		$	27,000
Investment in Net Connect		860,000
Capitalized software		967,000			142,000
Computer equipment		1,052,000			42,000
Communications equipment		902,000			322,000
Patent					177,000
Total assets	$	3,828,000		$	710,000
Long-term debt	$	(927,000	)	$	(602,000	)
Common stock-Access IT		(2,520,000	)
Common stock-Net Connect					(27,000	)
Retained earnings		(381,000	)		(81,000	)
Total liabilities and equity	$	(3,828,000	)	$	(710,000	)

Each of the above amounts represents a fair value at January 1, 2014. The fair value of the 60 percent of Net Connect shares not owned by Access IT was $1,290,000.

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.)