On January 1, 2021, Access IT Company exchanged $910,000 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 $1,870,000 In contractual agreements with the sole owner of the remaining 60 percent of Net Connect, Access IT was granted () 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: (Note: Parentheses indicate credit balances) Net Connect $ 32,000 Acc IT 5 52.00 910, we 972, een 1,057, se, eee Cash Investment in Nat Connect dapitalized software computer equipment othunication equipment Patent Yet1 ants Hengtere debt Cool Stock-Access IT stock et Connect trinit Tilities and equity 17.de 47, 127.00 162,00 3 735,00 (607.00) $ 3.198,00 3 1932.100 12,520,000) 082.00) FOTO) (215,00) Each of the above amounts represents a fair value of January 1, 2021 The folr value of the 60 percent of Net Connect shoes not owned by Access it was estimated at $1,365.000 Prepare on stationare consolidation worksheet for Access IT and its variable interest entity (For accounts where multiple consolidation tres 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 om lowed Input all amounts as positive values.) ACCESS IT COMPANY AND NET CONNECT Consolidation Worksheet At January 1, 2021 Consolidation Entries Access IT Net Connect Debit Credit 5 52,000 $ 32.000 210,000 072.000 147.000 1.057.000 47.000 007.000 327,000 Consolidated Balances NCI 182.000 Cash Investment in Net Connect Capitalized software Computer equipment Communications equipment Research and development asset Patent Goodwill Total sets Long-term debt Common stock Access IT common stock.Net Connect Retained things Nengontrolling interest Tobilies and uity 5 735.000 $ 5 3898.000 (032.000) (2.670,000 $ 1007.000 132.000) (05.000) 300,000 (3.698.000) $ 235.000 Q3