On January 1, 2020, QuickPort Company acquired 90 percent of the outstanding voting stock of NetSpeed, Inc., for $873,000 in cash and stock options. At the acquisition date, NetSpeed had common stock of $880,000 and Retained Earnings of $44,000. The acquisition-date fair value of the 10 percent noncontrolling interest was $97,000. QuickPort attributed the $46,000 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:

	Net Income			Dividends Declared
2020	$	61,400		$	6,200
2021		88,200			6,200

On July 1, 2020, QuickPort sold communication equipment to NetSpeed for $32,600. The equipment originally cost $37,200 and had accumulated depreciation of $7,000 and an estimated remaining life of three years at the date of the intra-entity transfer.

1. Compute the equity method balance in QuickPort's Investment in NetSpeed, Inc., account as of December 31, 2021.
2. Prepare the worksheet adjustments for the December 31, 2021, consolidation of QuickPort and NetSpeed.