On January 1, 2018, Access IT Company exchanged $850,000 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 $1,810,000 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 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 Access IT Net Connect Cash $ 46,000 $ 26,000 Investment in Net Connect 850,000 Capitalized software 966,000 141,000 Computer equipment 1,051,000 41,000 Communications equipment 901,000 321,000 Patent 176,000 Total assets $ 3,814,000 $ 705,000 Long term debt $ (926,000 ) $ (601,000 ) Common stock Access IT (2,510,000 ) Common stock Net Connect (26,000 ) Retained earnings (378,000 ) (78,000 ) Total liabilities and equity $ (3,814,000 ) $ (705,000 ) 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 $1,275,000 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 Amounts in the Debit and Credit columns should be entered as positive Negative amounts for the NCI and Consolidated Totals columns should be entered with a minus sign )

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On January 1, 2018, Access IT Company exchanged $850,000 for 40 percent of the outstanding voting stock of Net Connect. Especially attractive to Access IT

On January 1, 2018, Access IT Company exchanged $850,000 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 $1,810,000.

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 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:

	Access IT			Net Connect
Cash	$	46,000		$	26,000
Investment in Net Connect		850,000
Capitalized software		966,000			141,000
Computer equipment		1,051,000			41,000
Communications equipment		901,000			321,000
Patent					176,000
Total assets	$	3,814,000		$	705,000
Long-term debt	$	(926,000	)	$	(601,000	)
Common stock-Access IT		(2,510,000	)
Common stock-Net Connect					(26,000	)
Retained earnings		(378,000	)		(78,000	)
Total liabilities and equity	$	(3,814,000	)	$	(705,000	)

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 $1,275,000.

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. Amounts in the Debit and Credit columns should be entered as positive. Negative amounts for the NCI and Consolidated Totals columns should be entered with a minus sign.)