Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, 2017, QuickPort Company acquired 90 percent of the outstanding voting stock of NetSpeed, Inc., for $891,000 in cash and stock options. At

image text in transcribed

On January 1, 2017, QuickPort Company acquired 90 percent of the outstanding voting stock of NetSpeed, Inc., for $891,000 in cash and stock options. At the acquisition date, NetSpeed had common stock of $910,000 and Retained Earnings of $45,500. The acquisition-date fair value of the 10 percent noncontrolling interest was $99,000. QuickPort attributed the $34,500 excess of NetSpeed's fair value over book value to a database with a five-year remaining life. During the next two years, NetSpeed reported the following: Dividends Net Income Declared $ 46,000 $ 4,600 66,100 4,600 2017 2018 On July 1, 2017, QuickPort sold communication equipment to NetSpeed for $24,200. The equipment originally cost $27,600 and had accumulated depreciation of $5,200 and an estimated remaining life of three years at the date of the intra-entity transfer. a. Compute the equity method balance in QuickPort's Investment in NetSpeed, Inc., account as of December 31, 2018. b. Prepare the worksheet adjustments for the December 31, 2018, 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, Inc., account as of December 31, 2018. Investment in NetSpeed, Inc., 12/31/18

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Connect For Data Analytics For Accounting

Authors: Author

2nd Edition

1264152000, 9781264152001

More Books

Students also viewed these Accounting questions

Question

What background experience do you have?

Answered: 1 week ago

Question

What requirement did Health Canada initially require of Aurora?

Answered: 1 week ago