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On January 1, 2021, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $110,000 in cash. The equipment had originally cost $99,000 but had

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On January 1, 2021, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $110,000 in cash. The equipment had originally cost $99,000 but had a book value of only $60,500 when transferred. On that date, the equipment had a five-year remaining life. Depreciation expense is computed using the straight-line method. Ackerman reported $550,000 in net income in 2021 (not including any investment income) while Brannigan reported $180,500. Ackerman attributed any excess acquisition-date fair value to Brannigan's unpatented technology, which was amortized at a rate of $6,500 per year. a. What is consolidated net income for 2021? b. What is the parent's share of consolidated net income for 2021 If Ackerman owns only 90 percent of Brannigan? c. What is the parent's share of consolidated net income for 2021 If Ackerman owns only 90 percent of Brannigan and the equipment transfer was upstream? d. What is the consolidated net income for 2022 If Ackerman reports $570,000 (does not include investment income) and Brannigan $193,000 in income? Assume that Brannigan is a wholly owned subsidiary and the equipment transfer was downstream. a. Consolidated net income for 2021 b. Parent's share of consolidated net income c. Parent's share of consolidated net income d. Consolidated net income for 2022 $ $ $ Amounts 684,400 667,000 670,960 On January 1, 2020, QuickPort Company acquired 90 percent of the outstanding voting stock of NetSpeed, Inc., for $972,000 in cash and stock options. At the acquisition date, NetSpeed had common stock of $1,020,000 and Retained Earnings of $51,000. The acquisition date fair value of the 10 percent noncontrolling Interest was $108,000. QuickPort attributed the $9,000 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 2020 $ 12,600 2021 18,000 Dividendis Declared $ 1,800 1,800 On July 1, 2020, QuickPort sold communication equipment to NetSpeed for $12,000. The equipment originally cost $17,000 and had accumulated depreciation of $6,500 and an estimated remaining life of three years at the date of the intra-entity transfer. a. Compute the equity method balance in QuickPort's Investment in NetSpeed, Inc., account as of December 31, 2021. b. Prepare the worksheet adjustments for the December 31, 2021, consolidation of QuickPort and NetSpeed

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