xy correct C Secure tion.com Chapter 6 Homework G Help Save& ExitSu Check my wo On January 1, 2018, Access IT Company exchanged $1,030,000 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 $1,990,000. 1.5 points In contractual agreements with the sole owner of the remaining 60 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 beneficlary of Net Connect Immediately after the purchase, Access IT and Net Connect presented the following balance sheets Investment in Net Connect Capitalized software Computer equipment Conmunications equipment Patent 44,000 1,030,000 984,000 1,069,000 919,000 44,000 159,000 39,000 Total aasets 4,066,000 1,000) (44,000) s(79,000 Long-tern debt Conmon atock-Access 17 Common stock-Not Connet (944,000 (2, 690,000) Retained earnings Total liabilities and equity $(4,066,000) Each of the above amounts represents a fair value at January 1, 2018. The fair value of the 60 percent of Net Connect shares not owned by Access IT was $1,545,000 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 debit column of the worksheet. Simlarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet Prev 1 of 4 Next>