On January 1, 2018, Access IT Company exchanged $1,000,000 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 client-accessible data. Although not recorded in Net Connects financial records, the fair value of the research project was considered to be $1,960,000. 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 $ 61,000 $ 41,000 Investment in Net Connect 1,000,000 Capitalized software 981,000 156,000 Computer equipment 1,066,000 56,000 Communications equipment 916,000 336,000 Patent 191,000 Total assets $ 4,024,000 $ 780,000 Long-term debt (941,000) (616,000) Common stockAccess IT (2,660,000) Common stockNet Connect (41,000) Retained earnings (423,000) (123,000) Total liabilities and equity $(4,024,000) $(780,000) Each of the above amounts represents a fair value at January 1, 2018. The fair value of the 60 percent of Net Connect shares not owned by Access IT was $1,500,000. Flag question: Question 20

How much is research and development cost ?

$1,960,000

$1,000,000

$100,000

$75,500 $0

What is the total ending balance of consolidation entries ?

$5,960,000

$2,500,000

$2,000,000

$175,5000

$0

What is the ending balance of consolidated total assets ?

$5,960,000

$6,140,000

$6,000,000

$4,024,000

$780,000

How much is Goodwill ?

$1,960,000

$1,000,000

$376,000

$75,500

$0

What is the ending balance of capitalized software after consolidation ?

$1,117,000

$1,122,000

$1,137,000

$1,252,000

$0