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 Connect's financial records, the fair value of the research project was considered to be $1,960,000. In contractual agreements with the sole ownier of the remaining 60 percent of Net Connect, Access IT was granted (1) various decision-making rights over Net Connect's 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: 20. How much is research and development cost ? A. $1,960,000 B. $1,000,000 C. $100,000 D. $75,500 E. \$0 21. What is the total ending balance of consolidation entries ? A. $5,960,000 B. $2,500,000 C. $2,000,000 D. $175,5000 E. $0 22. What is the ending balance of consolidated total assets? A. $5,960,000 B. $6,140,000 C. $6,000,000 D. $4,024,000 E. $780,000 23. How much is Goodwill? A. $1,960,000 B. $1,000,000 C. $376,000 D. $75,500 E. $0 What is the Elmination entrys? A. Retained Eamings 123,000 Commen Stock-Access 41,000 Investment in Net Connect 65,600 Noncominalling interest 98,400 B. Retained Earnings 41,000 Commen 5tock 123,000 Ifveasment in Net Connect 65,600 Noncontrolling Interest 98,400 C. Net income 121,000 Common 5tock-Access 41,000 Investment in Net Conriect 65,600 Noncontrelling interest $9,400 0. Retained farnings 123,000 Commen Stock Accews 41,000 investment in Net Connect 65,600 Controlling interent 98,400 E. None of the above k5. What is the ending balance of capitalized software after consolidation ? A. $1,117,000 B. $1,122,000 C. $1,137,000 D. $1,252,000 E. \$0