On January 1, 2018, Access IT Company exchanged $990,000 for 45 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 $1,950,000 In contractual agreements with the sole owner of the remaining 55 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: Net Connect $ 40,eee Cash Investment in Net Connect Capitalized software Computer equipment Communications equipment Patent Access IT $ 60,000 990,00 980, eee 1,065, eee 915,00 155, eee 55,000 335,000 190,00 $ 775, eee $ (615,880 $ 4,010,eee $ (940,000) (2,650,000) Total assets Long-term debt Common stock-Access IT Common stock-Net Connect Retained earnings Total liabilities and equity (420,eee) $(4,210, eee) (40, eee) (12e,eee) $ (775, eee) Each of the above amounts represents a fair value at January 1, 2018. The fair value of the 55 percent of Net Connect shares not owned by Access IT was $1,210,000. 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 deblt 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.) Consolidated Balances NCI ACCESS IT COMPANY AND NET CONNECT Consolidation Worksheet January 1, 2018 Consolidation Entries Access IT Net Connect Debit Credit 60,000 $ 40,000 990,000 980,000 155,000 1,065,000 55,000 915,000 335,000 $ 190,000 Cash Investment in NetConnect Capitalized software Computer equipment Communications equipment Research and development asset Patent Goodwill Total assets Long-term debt Common stock-Access IT Common stock-NetConnect Retained earnings Noncontrolling interest Total liabilities and equity $ 4,010,000 $ (940,000) $ (2,650,000) 775,000 (615,000) $ (40,000) (120,000) (420,000) $ (4,010,000) $ (775,000)