Problem 5-23 (Algo) (LO 5-7) On January 1, 2020, QuickPort Company acquired 90 percent of the outstanding voting stock of NetSpeed, Inc., for $990,000 in cash and stock options. At the acquisition date, NetSpeed had common stock of $1,030,000 and Retained Earnings of $51,500. The acquisition-date fair value of the 10 percent noncontrolling interest was $110,000. QuickPort attributed the $18,500 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: 2020 2021 Net Income $ 25,900 37,000 Dividends Declared $ 3,700 3,700 On July 1, 2020, QuickPort sold communication equipment to NetSpeed for $21,500. The equipment originally cost $30,000 and had accumulated depreciation of $10,000 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. Complete this question by entering your answers in the tabs below. Required A Required B Drenare the worksheet adiustments for the December 21 202 consolidation of nucleart and Mathead TIF o antrie reguired for :X x 1 Prepare entry *TA 2 Prepare entry S 3 Prepare entry A 4 Prepare entry I 5 Prepare entry D 6 Prepare Entry E 7 Prepare entry ED Note : = journal entry has been entered No Transaction Accounts Debit Credit 1 1 Equipment Investment in NetSpeed Accumulated depreciation 9,750 2 2 Common stock - NetSpeed Retained earnings-NetSpeed Investment in NetSpeed Noncontrolling interest 3 3 Database Investment in NetSpeed Noncontrolling interest 4 4 4 Equity in earnings of NetSpeed Investment in NetSpeed 5 5 Investment in NetSpeed Dividends declared 6 6 Amortization expense Database 7 7 Accumulated depreciation Depreciation expense